INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax provision is summarized as follows:

	Year Ended December 31,
	2020			2019
Current:
Federal	$	-		$	-
State		4,000			-
		4,000			-
Deferred:
Federal		310,000			97,000
State		160,000			7,000
Decrease in valuation allowance		(470,000	)		(104,000	)
		-			-

Income tax provision	$	4,000		$	-

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The actual income tax provision differs from the “expected” tax computed by applying the Federal corporate tax rate of 21% to the income before income taxes as follows:

	Year Ended December 31,
	2020			2019
“Expected” income tax benefit	$	286,000		$	204,000
State tax expense, net of Federal benefit		3,000			-
Foreign loss		-			(30,000	)
Decrease in valuation allowance		(470,000	)		(104,000	)
Other		185,000			(70,000	)
Income tax provision	$	4,000		$	-

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences which give rise to significant portions of the deferred taxes are summarized as follows:

	December 31,
	2020			2019
Deferred tax assets:
Inventory reserves	$	1,420,000		$	1,758,000
Allowances for bad debts and returns		2,000			5,000
Accrued expenses		21,000			21,000
Asset valuation reserve		539,000			539,000
Net operating loss carry forwards		213,000			283,000
Other		72,000			160,000
Total deferred tax assets		2,267,000			2,766,000
Valuation allowance		(2,121,000	)		(2,587,000	)
		146,000			179,000
Deferred tax liabilities:
Deferred state taxes		(146,000	)		(179,000	)
Total deferred tax liabilities		(146,000	)		(179,000	)

Net deferred tax assets	$	-		$	-