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INCOME TAX (Tables)
12 Months Ended
Dec. 31, 2022
INCOME TAX  
SCHEDULE OF PRETAX INCOME (LOSS)

Pretax income (loss) resulting from domestic and foreign operations is as follows (in thousands):

    

    

2022

    

2021

United States

$

(2,569)

$

(18,130)

Foreign

 

(2,707)

 

6,032

Other Foreign Jurisdictions

1,582

1,606

Total pretax book loss

$

(3,694)

$

(10,492)

SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT

The components of income tax expense at December 31, 2022 and December 31, 2021, are as follows (in thousands):

    

2022

    

2021

Current:

 

  

 

  

Federal

$

1,491

$

State

 

138

 

62

Foreign

 

1,399

 

2,722

Total Current

$

3,028

$

2,784

Deferred:

 

  

 

  

Federal

$

(85)

$

State

 

 

Foreign

 

(2,894)

 

526

Total Deferred

$

(2,979)

$

526

Total

$

49

$

3,310

SCHEDULE OF INCOME TAX RECONCILIATION

The reconciliation of the provision for income taxes at the United States Federal statutory rate compared to the Company’s income tax expense (benefit) as reported is as follows (in thousands)

    

2022

    

2021

Loss before income taxes

 

$

(3,694)

 

$

(10,492)

Income tax benefit computed at the statutory rate

(776)

(2,203)

State income taxes-net of federal tax benefit

73

49

Foreign tax rate differential

 

(19)

 

(107)

Loss on debt settlement

 

 

788

Section 162(m) compensation

61

168

FX Adjustment

(265)

GILTI Inclusion

160

102

Meals

39

12

Stock compensation

83

(75)

Amortization

11

(4)

PPP loan

(179)

Non-deductible expenses

 

186

 

(10)

Prior period true ups – temporary differences

 

197

 

(35)

Rate changes and differentials

 

(651)

 

2,193

Change in valuation allowance

 

864

 

2,697

Income tax expense

$

49

$

3,310

SCHEDULE OF DEFERRED TAX ASSETS

Tax effects of temporary differences at December 31, 2022 and December 31, 2021 are as follows (in thousands):

Deferred tax assets:

    

2022

    

2021

Fixed assets

$

$

13

Allowance for bad debts

 

507

 

442

Inventory

 

294

 

192

R&D amortization

413

Accrued expenses

 

 

Deferred revenue

 

5,600

 

4,232

Stock compensation

 

1,209

 

645

Net lease asset

1

Other

 

203

 

Interest expense limitation

 

3,751

 

1,903

Net operating loss carry-forwards

 

7,282

 

8,165

Deferred tax assets (liabilities)

$

19,260

$

15,592

Valuation allowance

 

(14,084)

 

(11,294)

Deferred tax assets, net

$

5,176

$

4,298

Deferred tax liabilities:

    

2022

    

2021

Fixed assets

$

(24)

$

Intangible assets

(8,603)

(11,452)

Accrued expenses

 

(752)

 

(413)

Prepaid expenses

 

(169)

 

(137)

Other

(308)

(745)

Deferred tax liabilities

$

(9,856)

$

(12,747)

Deferred tax liabilities, net

$

(4,680)

$

(8,449)