INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of Components of Income Tax (Benefit) Expense

Income tax (benefit) expense in the consolidated statements of operations and comprehensive (loss) income consists of:

	Years Ended December 31,
	2020		2019
Current:
Federal	$	(1,821,000)	$	1,078,000
State and local		(73,000)		312,000
Foreign		3,000		3,000
Total current		(1,891,000)		1,393,000
Deferred:
Federal		(238,000)		513,000
State and local		263,000		(105,000)
Foreign		(35,000)		(4,000)
Total deferred		(10,000)		404,000
Totals	$	(1,901,000)	$	1,797,000

Schedule of Deferred tax assets (liabilities)

Deferred tax assets (liabilities) consist of:

	December 31,
	2020		2019
Deferred tax assets:
Bad debt reserves	$	25,000	$	17,000
Inventory reserves		762,000		653,000
Warranty and other reserves		74,000		77,000
Stock-based compensation		205,000		212,000
Goodwill		852,000		866,000
Acquisition costs		212,000		223,000
Net operating losses - federal		—		—
Net operating losses - state		168,000		77,000
Other		51,000		20,000
Less valuation allowance		(316,000)		—
		2,033,000		2,145,000
Deferred tax (liabilities):
Prepaid expenses		(260,000)		(79,000)
Depreciation		(1,113,000)		(1,154,000)
Intangibles		(434,000)		(696,000)
Net deferred tax assets	$	226,000	$	216,000

Schedule of components of (loss) income before income taxes

The components of (loss) income before income taxes consisted of the following:

	Years ended December 31,
	2020		2019
United States operations	$	(6,663,000)	$	6,715,000
International operations		(192,000)		(7,000)
(Loss) income before income taxes	$	(6,855,000)	$	6,708,000

Schedule reconciliation of the Federal statutory rate

A reconciliation of the Federal statutory rate to the total effective (benefit) tax rate applicable to (loss) income is as follows:

	Years ended December 31,
	2020		2019
Federal income (benefit) tax expense computed at statutory rates	(21.0)	%	21.0	%
(Decrease) increase in taxes resulting from:
State and local taxes, net of Federal tax benefit	(2.4)		2.4
Permanent differences - net	0.4		3.1
Valuation allowance	4.6		—
Foreign rate differential	0.1		—
CARES Act	(9.3)		—
Other	(0.1)		0.3
Income (benefit) tax expense	(27.7)	%	26.8	%