INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

INCOME TAXES

Components of income (loss) before taxes

	Year Ended December 31,
(in thousands)	2024			2023
U.S. operations	$	(3,591	)	$	(536	)
Foreign operations		884			1,216
Total income (loss) before taxes	$	(2,707	)	$	680

Components of income tax expense (benefit)

	Year Ended December 31,
(in thousands)	2024		2023
Current tax expense (benefit)
U.S. federal	$	0	$	0
State		4		20
Foreign		382		174
		386		194
Deferred tax expense (benefit) – U.S. federal		-		-
Total income tax expense (benefit)	$	386	$	194

Reconciliation of effective income tax

	Year Ended December 31,
(in thousands)	2024			2023
Statutory tax	$	(568)		$	143
State and foreign income tax, net of federal income tax benefit		150			(178	)
Valuation allowance for deferred tax assets		804			139
Foreign sourced deemed dividend income		175			322
Stock based compensation		(168	)		(250	)
Other		(7	)		18
Total income tax expense (benefit)	$	386		$	194

Schedule of deferred tax assets

	Year Ended December 31,
(in thousands)	2024			2023
Deferred income tax assets:
Allowance for credit losses	$	4		$	14
Inventory and product return reserves		1,666			1,168
Compensation accruals		2,791			2,750
Accrued liabilities		(22	)		65
Book-over-tax depreciation and amortization		12			18
Foreign net operating loss carryforwards		241			184
U.S. net operating loss carryforwards		2,983			2,899
U.S. credit carryforwards		1,564			1,557
		9,239			8,655
Valuation Allowance		(9,239	)		(8,655	)
Total Deferred Income Tax Assets	$	-		$	-

Schedule of unrecognized tax benefits

	Year Ended December 31,
	2024		2023
(in thousands)
Unrecognized tax benefits, opening balance	$	430	$	422
Prior period tax position increases		-		(6	)
Additions based on tax positions related to current year		12		14
Unrecognized tax benefits, ending balance	$	442	$	430