Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Income tax benefit

Year Ended December 31	2021		2020
Current taxes - Federal	$	—	$	(233,000	)
Current taxes - State		42,000		42,000
Income tax expense (benefit)	$	42,000	$	(191,000	)

Reconciliation of effective federal income tax rate

Year Ended December 31	2021			2020
Federal statutory rate		21.0	%		21.0	%
Stock-based awards		2.0			(0.8	)
State taxes		3.6			3.6
Impact of uncertain tax positions		(1.0	)		(0.7	)
Valuation allowance		(34.3	)		(19.6	)
PPP forgiveness		7.5			—
Other		—			0.8
Effective federal income tax rate		(1.2	)%		4.3	%

Deferred tax assets (liabilities)

As of December 31	2021			2020
Deferred tax assets
Accrued expenses	$	507,000		$	376,000
Inventory reserve		23,000			9,000
Stock-based awards		31,000			65,000
Reserve for bad debts		88,000			33,000
Net operating loss and credit carryforwards		2,507,000			1,422,000
Other		33,000			47,000
Depreciation		33,000			52,000
Valuation allowance		(3,146,000	)		(1,946,000	)
Total deferred tax assets	$	76,000		$	58,000
Deferred tax liabilities
Prepaid expenses	$	(76,000	)	$	(58,000	)
Total deferred tax liabilities		(76,000	)		(58,000	)
Net deferred income tax liabilities	$	—		$	—

Uncertain tax positions

Balance at January 1, 2020	$	643,000
Increases due to interest and state tax		34,000
Balance at December 31, 2020		677,000
Increases due to interest and state tax		34,000
Balance at December 31, 2021	$	711,000