Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income tax benefit

Year Ended December 31	2020			2019
Current taxes - Federal	$	(233,000	)	$	-
Current taxes - State		42,000			38,000
Deferred taxes - Federal		-			(437,000	)
Deferred taxes - State		-			(67,000	)
Income tax benefit	$	(191,000	)	$	(466,000	)

Reconciliation of effective federal income tax rate

Year Ended December 31	2020			2019
Federal statutory rate		21.0	%		21.0	%
Stock-based awards		(0.8	)		(0.8	)
State taxes		3.5			3.2
Other permanent differences		-			(0.1	)
Impact of uncertain tax positions		(0.7	)		(0.6	)
Valuation allowance		(19.5	)		(14.0	)
Other		0.8			(0.2	)
Effective federal income tax rate		4.3	%		8.5	%

Deferred tax assets (liabilities)

As of December 31	2020			2019
Deferred tax assets
Accrued expenses	$	153,000		$	105,000
Inventory reserve		9,000			5,000
Stock-based awards		65,000			88,000
Reserve for bad debts		33,000			16,000
Net operating loss and credit carryforwards		1,422,000			715,000
Other		47,000			26,000
Depreciation		52,000			-
Valuation allowance		(1,723,000	)		(848,000	)
Total deferred tax assets	$	58,000		$	107,000
Deferred tax liabilities
Depreciation	$	-		$	(18,000	)
Prepaid expenses		(58,000	)		(89,000	)
Total deferred tax liabilities		(58,000	)		(107,000	)
Net deferred income tax liabilities	$	-		$	-

Uncertain tax positions

Balance at January 1, 2019	$	613,000
Increases due to interest and state tax		30,000
Balance at December 31, 2019		643,000
Increases due to interest and state tax		34,000
Balance at December 31, 2020	$	677,000