INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Components of income (loss) before taxes

	Year Ended December 31,
(in thousands)	2022			2021
U.S. operations	($1,622		)	($2,086		)
Foreign operations		1,185			1,643
Total income (loss) before taxes	($437		)	($443		)

Components of income tax expense (benefit)

	Year Ended December 31,
(in thousands)	2022		2021
Current tax expense (benefit)
U.S. federal	$	0	$	0
State		19		(2	)
Foreign		664		114
		683		112
Deferred tax expense (benefit) – U.S. federal		-		-
Total income tax expense (benefit)	$	683	$	112

Reconciliation of effective income tax

	Year Ended December 31,
(in thousands)	2022			2021
Statutory tax	($92		)	($93		)
State and foreign income tax, net of federal income tax benefit		(189	)		(254	)
Valuation allowance for deferred tax assets		370			454
Foreign sourced deemed dividend income		738			341
Stock based compensation		(154	)		(325	)
Other		10			(11	)
Total income tax expense (benefit)	$	683		$	112

Schedule of deferred tax assets and liabilities

	Year Ended December 31,
	2022			2021
(in thousands)
Deferred income tax assets:
Allowance for doubtful accounts	$	22		$	13
Inventory and product return reserves		477			484
Compensation accruals		2,511			2,421
Accrued liabilities		151			202
Book-over-tax depreciation and amortization		25			23
Foreign net operating loss carryforwards		149			22
U.S. net operating loss carryforwards		4,399			3,301
U.S. credit carryforwards		1,560			1,440
		9,294			7,906
Valuation Allowance		(9,294	)		(7,906	)
Total Deferred Income Tax Assets	$	-		$	-

Schedule of unrecognized tax benefits

	Year Ended December 31,
	2022		2021
(in thousands)
Unrecognized tax benefits, opening balance	$	392	$	365
Prior period tax position increases		-		-
Additions based on tax positions related to current year		30		27
Unrecognized tax benefits, ending balance	$	422	$	392