INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

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	2023			2022
Current provision (benefit):
Federal	$	892		$	16
State		181			41
Foreign		102			96
Related to UTP		(34	)		28
		1,141			181
Deferred provision (benefit):
Federal		(266	)		-
State		(103	)		-
Foreign		5			-
		(364	)		-
Total tax provision (benefit)	$	777		$	181

Income Before Income Taxes

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

(in thousands)	Year Ended December 31,
Income (Loss) Before Income Taxes	2023		2022
United States	$	3,765	$	733
Spain		25		(83	)
Canada		755		758
TOTAL	$	4,545	$	1,408

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:	2023			2022
(in thousands)
Inventory	$	412		$	471
Stock-based compensation		55			93
Accounts receivable		8			14
Sales returns		49			47
Foreign currency translation gain/loss in OCI		512			689
Net operating losses		182			261
Accrued expenses		170			63
Leases		108			152
Total deferred income tax assets		1,496			1,790
Less:  valuation allowance		(154	)		(1,151	)
Total deferred income tax assets, net of valuation allowance	$	1,342		$	639
Property and equipment depreciation	$	471		$	639
Total deferred income tax liabilities		471			639
Net deferred tax asset (liability)	$	871		$	-

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,
	2023			2022
Statutory rate – Federal U.S. income tax		21.0	%		21.0	%
State and local taxes		5.3	%		(0.6	)%
Permanent book/tax differences		2.4	%		11.3	%
Change in valuation allowance		(6.8	)%		(20.3	)%
Interest on Uncertain Tax Position		(0.8	)%		2.0	%
Income tax credits		(2.3	)%		-
Other, net		(1.7	)%		(0.5	)%
Effective rate		17.1	%		12.9	%

Reconciliation of Uncertain Tax Positions

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

	2023			2022
UTP at beginning of the year	$	450		$	415
Gross (decrease) increase to tax positions in current period		(27	)		7
Interest expense		(35	)		28
UTP at end of year	$	388		$	450