NOTE 12 - INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components of income (loss) before taxes

	Year Ended December 31,
(in thousands)	2020			2019
U.S. operations	$	(4,451	)	$	(2,518	)
Foreign operations		874			1,362
Total income (loss) before taxes	$	(3,577	)	$	(1,156	)

Components of income tax expense (benefit)

	Year Ended December 31,
(in thousands)	2020			2019
Current tax expense (benefit)
U.S. federal	$	0		$	(42	)
State		(2	)		8
Foreign		389			65
		387			31
Deferred tax expense (benefit) – U.S. federal		-			-
Total income tax expense (benefit)	$	387		$	31

Reconciliation of effective income tax

	Year Ended December 31,
	2020			2019
(in thousands)
Statutory tax	$	(751	)	$	(243	)
State and foreign income tax, net of federal income tax benefit		151			(230	)
Valuation allowance for deferred tax assets		1,513			568
Foreign sourced deemed dividend income		(394	)		-
Stock based compensation		(136	)		(177	)
Other		4			113
Total income tax expense (benefit)	$	387		$	31

Schedule of deferred tax assets and liabilities

	Year Ended December 31,
	2020			2019
(in thousands)
Deferred income tax assets:
Allowance for doubtful accounts	$	10		$	13
Inventory and product return reserves		573			464
Compensation accruals		1,973			1,723
Accrued liabilities		179			129
Book-over-tax depreciation and amortization		91			25
Foreign net operating loss carryforwards		53			3
U.S. net operating loss carryforwards		3,739			2,904
U.S. credit carryforwards		2,345			2,280
		8,963			7,541
Valuation Allowance		(8,963	)		(7,541	)
Total Deferred Income Tax Assets	$	-		$	-

Schedule of unrecognized tax benefits

	Year Ended December 31,
	2020		2019
(in thousands)
Unrecognized tax benefits, opening balance	$	348	$	308
Prior period tax position increases		-		10
Additions based on tax positions related to current year		17		30
Unrecognized tax benefits, ending balance	$	365	$	348