INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of provision for income tax

The provision for income tax consisted of the following:

	For the Years Ended December 31,
	2020			2019
Current:
Federal	$	-		$	-
Foreign		619			1,805
State and Local		-			-
Total Current		619			1,805
Deferred
Federal		1,731,000			1,337,000
Foreign		-			-
State and Local		(9,000	)		25,000
Adjustment to valuation allowance related to net deferred tax assets		(1,722,000	)		(1,362,000	)
Total Deferred		-			-
Provision for income taxes	$	619		$	1,805

Schedule of loss before income taxes

Loss before income taxes is comprised of the following:

	For the Years Ended December 31,
	2020			2019
Domestic	$	(826,359	)	$	(555,843	)
Foreign		3,143			9,082
Net loss before income taxes	$	(823,216	)	$	(546,761	)

Schedule of effective rate for income taxes

A reconciliation between the effective rate for income taxes and the amount computed by applying the statutory Federal income tax rate to loss before provision for income taxes is as follows:

	For the Years Ended December 31,
	2020		2019
Tax provision at statutory rate	(21	)%	(21	)%
State and local taxes	(3	)%	(3	)%
Incentive Stock Option Expense	-		1	%
Change in valuation allowance for net deferred tax assets	24	%	23	%
	-	%	-	%

Schedule of components of temporary differences of deferred tax asset, net

%

The components of temporary differences that give rise to significant portions of the deferred tax asset, net, are as follows:

	For the Years Ended December 31,
	2020			2019
Deferred tax assets:
Accrued expenses	$	16,000		$	17,000
Allowance for doubtful accounts		1,000			1,000
Deferred revenue		8,000			-
Reserve for obsolescence		23,000			25,000
Expense associated with non-qualified stock options		37,000			37,000
Revenue Sharing Agreement		210,000			234,000
General business credit		1,004,000			1,198,000
NOL carryforward		5,732,000			7,241,000
		7,031,000			8,753,000
Less: valuation allowance		(7,031,00	)		(8,753,000	)
Deferred tax asset, net	$	-		$	-

Schedule of change in valuation allowance for deferred tax assets

The change in the valuation allowance for deferred tax assets are summarized as follows:

	For the Years Ended December 31,
	2020			2019
Beginning Balance	$	8,753,000		$	10,115,000
Change in Allowance		(1,722,000	)		(1,362,000	)
Ending Balance	$	7,031,000		$	8,753,000