INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES [Abstract]

Provision for Income Taxes

The provision for income taxes consists of the following:

(in thousands)	Year Ended December 31,
Income Tax Benefit	2021		2020
Current provision (benefit):
Federal	$	640	$	(1,385	)
State		98		65
Foreign		-		6
Related to UTP		19		20
		757		(1,294	)
Deferred provision (benefit):
Federal		-		(62	)
State		-		(3	)
Foreign		82		(19	)
		82		(84	)
Total tax provision (benefit)	$	839	$	(1,378	)

Income (Loss) Before Income Taxes

Income (loss) before income taxes was earned in the following tax jurisdictions:

(in thousands)	Year Ended December 31,
Income (Loss) Before Income Taxes	2021			2020
United States	$	2,552		$	(6,222	)
Spain		(135	)		161
Canada		(229	)		(204	)
Australia		(1	)		(7	)
United Kingdom		6			(7	)
TOTAL	$	2,193		$	(6,279	)

Income Tax Effects of Temporary Differences Impacting Deferred Income Tax Assets and Liabilities

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows:

Deferred income tax assets:	2021			2020
(in thousands)
Inventory	$	464		$	498
Stock-based compensation		59			63
Accounts receivable		4			4
Sales returns		125			105
Foreign currency translation gain/loss in OCI		342			323
Goodwill and other intangible assets amortization		-			5
Net operating loss		646			665
Accrued expenses		359			170
Leases		195			250
Other		2			1
Total deferred income tax assets		2,196			2,084
Less:  valuation allowance		(1,489	)		(1,320	)
Total deferred income tax assets, net of valuation allowance	$	707		$	764
Property and equipment depreciation	$	707		$	682
Total deferred income tax liabilities		707			682
Net deferred tax asset (liability)	$	-		$	82

Reconciliation of Effective Tax Rate from Statutory Rate

Below is a reconciliation of our effective tax rate from the statutory rate:

	Year Ended December 31,
	2021			2020
Statutory rate – Federal U.S. income tax		21	%		21	%
State and local taxes		9	%		3	%
Permanent book/tax differences		3	%		(2	)%
Difference in tax rates in loss carryback periods		0	%		8	%
Change in valuation allowance		6	%		(10	)%
Rate differential on UTP reversals		1	%		0	%
Other, net		(2	)%		2	%
Effective rate		38	%		22	%

Reconciliation of Uncertain Tax Positions

A reconciliation of the beginning and ending amount of uncertain tax positions (“UTP”) is as follows:

	2021		2020
UTP at beginning of the year	$	393	$	296
Gross increase to tax positions in current period		3		77
Interest expense		19		20
UTP at end of year	$	415	$	393