INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES (Tables)

Components of income (loss) before taxes

	Year Ended December 31,
(in thousands)	2021			2020
U.S. operations	$	(2,086	)	$	(4,451	)
Foreign operations		1,643			874
Total income (loss) before taxes	$	(443	)	$	(3,577	)

Components of income tax expense (benefit)

	Year Ended December 31,
(in thousands)	2021			2020
Current tax expense (benefit)
U.S. federal	$	0		$	0
State		(2	)		(2	)
Foreign		114			389
		112			387
Deferred tax expense (benefit) – U.S. federal		-			-
Total income tax expense (benefit)	$	112		$	387

Reconciliation of effective income tax

	Year Ended December 31,
(in thousands)	2021			2020
Statutory tax	$	(93	)	$	(751	)
State and foreign income tax, net of federal income tax benefit		(254	)		151
Valuation allowance for deferred tax assets		454			1,513
Foreign sourced deemed dividend income		341			(394	)
Stock based compensation		(325	)		(136	)
Other		(11	)		4
Total income tax expense (benefit)	$	112		$	387

Schedule of deferred tax assets and liabilities

	Year Ended December 31,
	2021			2020
(in thousands)
Deferred income tax assets:
Allowance for doubtful accounts	$	13		$	10
Inventory and product return reserves		484			573
Compensation accruals		2,421			1,973
Accrued liabilities		202			179
Book-over-tax depreciation and amortization		23			91
Foreign net operating loss carryforwards		22			53
U.S. net operating loss carryforwards		3,301			3,739
U.S. credit carryforwards		1,440			2,345
		7,906			8,963
Valuation Allowance		(7,906	)		(8,963	)
Total Deferred Income Tax Assets	$	-		$	-

Schedule of unrecognized tax benefits

	Year Ended December 31,
	2021		2020
(in thousands)
Unrecognized tax benefits, opening balance	$	365	$	348
Prior period tax position increases		-		-
Additions based on tax positions related to current year		27		17
Unrecognized tax benefits, ending balance	$	392	$	365