Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 19 – Income Taxes

The following summarizes the benefit for income taxes for the years ended December 31, 2021 and 2020:

	2021			2020
Current:
Federal	$	-		$	-
State and local		15			15
		15			15
Deferred:
Federal		(266	)		(1,488	)
State and local		(3	)		(26	)
		(269	)		(1,514	)
Valuation allowance		269			1,514
Provision for income taxes	$	15		$	15

The provision for income taxes differs from the amounts computed by applying the applicable Federal statutory rates due to the following for the years ended December 31, 2021 and 2020:

	2021			2020
Provision (benefit) for Federal income taxes at the statutory rate	$	21		$	(1,567	)
State and local income taxes, net of Federal provision (benefit)		10			12
Permanent differences:
Other		(285	)		73
Change in valuation allowance		269			1,514
Other		-			(17	)
Provision for income taxes	$	15		$	15

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,
	2021			2020
Deferred tax assets:
Allowance for doubtful accounts	$	51		$	59
Inventories		668			779
Intangible		139			130
Share based compensation		332			261
Net operating loss carry forward		7,691			7,385
Depreciation		22			6
Pension liability		43			39
Other		2			2
Total deferred tax assets		8,948			8,661
Deferred tax liabilities:
Intangible		(4	)		(4	)
Indefinite life intangibles		(174	)		(156	)
Total deferred tax liabilities		(178	)		(160	)
		8,770			8,501
Valuation allowance		(8,770	)		(8,501	)
Net	$	-		$	-

For the year ended December 31, 2021, the Company had approximately $27,937 and $24,134 of federal and state net operating loss carryovers (“NOL”), respectively, which begin to expire in 2022. Additionally, there are federal NOL carryovers of $8,300 which do not expire.

The change in the valuation allowance for the years ended December 31, 2021 and December 31, 2020 was $269 and $1,514, respectively.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and taxing strategies in making this assessment. The decision to record this valuation allowance was based on management evaluating all positive and negative evidence. The significant negative evidence includes a loss for the current year, a cumulative pre-tax loss for the three years ended December 31, 2021, the inability to carryback the net operating losses, limited future reversals of existing temporary differences and the limited availability of tax planning strategies. The Company expects to continue to provide a full valuation allowance until, or unless, it can sustain a level of profitability that demonstrates its ability to utilize these assets.

The Company had no change in its liability for uncertain tax position during 2021 and no liabilities for uncertain tax positions as of December 31, 2021. ASC 740 discusses the classification of related interest and penalties on income taxes. The Company’s policy is to record interest and penalties incurred in connection with income taxes as a component of income tax expense. No interest or penalties were recorded during the years ended December 31, 2021 and 2020.

The Company is required to file U.S. federal and state income tax returns. These returns are subject to audit by tax authorities beginning with the year ended December 31, 2018 or tax years beginning with the year ended December 31,2003 as the Company utilizes net operating losses.