INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES [Abstract]

Components of (Loss) Before Income Taxes

The components of (loss) before income taxes consisted of the following:

	Year Ending December 31,
	2020			2019
United States operations	$	(23,384,133	)	$	(12,504,780	)
International operations		(2,593,989	)		(1,670,641	)
(Loss) before taxes	$	(25,978,122	)	$	(14,175,421	)

(Benefit) Provision for Income Taxes

The (benefit from) provision for income taxes for the years ended December 31, 2020 and 2019 is comprised of the following:

	Year Ending December 31,
	2020			2019
Current
Federal	$	(66,906	)	$	-
State		6,497			9,790
Foreign		-			3,633
Total current (benefit) provision		(60,409	)		13,423
Deferred
Federal		-			-
State		-			-
Foreign		(396,385	)		(513,715	)
Total deferred (benefit) provision		(396,385	)		(513,715	)
Total (benefit) provision	$	(456,794	)	$	(500,292	)

Reconciliation of Federal Statutory Rate to Effective Rate Applicable to Loss Before Income Taxes

A reconciliation of the Federal statutory rate to the effective rate applicable to loss before income taxes is as follows:

	Year Ending December 31,
	2020			2019
Federal income tax at statutory rates		21.00	%		21.00	%
State income taxes, net of federal benefit		(0.02	)%		(0.05	)%
Nondeductible expenses		(0.19	)%		(1.00	)%
Foreign rate differential		0.47	%		0.45	%
Change in valuation allowance		(19.37	)%		(17.51	)%
Other		(0.13	)%		0.64	%
Income tax benefit		1.76	%		3.53	%

Deferred Tax Assets and Liabilities

The Company has state net operating loss carryforwards of approximately $3,511,090 which generally expire between 2035 and 2039. The Company has foreign net operating loss carryforwards of approximately $5,598,852 which generally expire between 2025 and 2026.

	2020			2019
Inventory reserves	$	461,709		$	196,193
Accrued expenses		130,291			105,323
Net operating loss carry-forwards		14,844,798			10,079,317
Research and development credit		1,696,870			1,679,495
Stock-based compensation		398,900			581,053
		602,187			-
Lease obligations		1,583,814			1,646,584
Depreciation		-			44,993
Total deferred tax assets		19,718,569			14,332,958
Right-of-use assets		(1,340,914	)		(1,538,129	)
Depreciation		(254,366	)		-
Intangibles		(821,363	)		(921,807	)
Total deferred tax liabilities		(2,416,643	)		(2,459,936	)
Net deferred tax assets before valuation allowance		17,301,926			11,873,022
Less valuation allowances		(17,371,867	)		(12,339,348	)
Net noncurrent deferred tax liabilities	$	(69,941	)	$	(466,326	)