INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income taxes

SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT)

The provision (benefit) for income taxes consists of the following:

	For the Years Ended
	December 31,
	2022			2021
Current tax provision
Federal	$	—		$	—
State		25,000			7,000
		25,000			7,000
Deferred tax provision (benefit)
Federal		(532,000	)		(503,000	)
State		(427,000	)		1,025,000
Foreign		(978,000	)		(2,052,000	)
Change in the valuation allowance		1,722,000			1,530,000
Total deferred tax provision (benefit)		(215,000	)		—
Income tax provision	$	(190,000	)	$	7,000

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

A reconciliation of the statutory tax rate to the effective tax rate is as follows:

	For the Years Ended
	December 31,
	2022			2021
Statutory federal income tax rate		21.00	%		21.00	%
State and local taxes, net of federal benefit		0.30			(6.27	)
Permanent differences		5.28			(9.12	)
Executive compensation		(2.26	)		—
Equity compensation		(11.06	)		—
Provision to return		0.00			(0.03	)
DTA adjustment for state NOL		0.00			(0.06	)
Foreign Rate Differential		(1.27	)		(1.96	)
Change rate		2.66			(5.06	)
Valuation allowance		(13.27	)		1.46
Effective tax rate		1.37	%		(0.04	)%

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

	For the Years Ended
	December 31,
	2022			2021
Deferred Tax Assets
Federal R&D credit	$	3,007,000		$	3,007,000
Inventory		576,000			457,000
Allowance for bad debt		72,000			76,000
Compensation related		7,000			298,000
Pension		72,000			39,000
Other accruals		7,000			16,000
State net operating losses		4,779,000			4,644,000
Federal net operating losses		44,821,000			43,045,000
Interest disallowance		1,151,000			82,000
Stock options		7,172,000			7,621,000
Other		296,000			1,097,000
Valuation Allowance		(61,731,000	)		(60,048,000	)
Total Deferred Tax Assets		229,000			334,000
Deferred Tax Liabilities
Property and Equipment		(90,000	)		(47,000	)
Intangibles		(870,000	)		(1,230,000	)
Prepaid Expenses		(33,000	)		(35,000	)
Total Deferred Tax Liabilities		(993,000	)		(1,312,000	)
Net Deferred Tax Liability	$	(764,000	)	$	(978,000	)