INCOME TAXES	3 Months Ended
Mar. 31, 2023
INCOME TAXES
INCOME TAXES	NOTE 8 – INCOME TAXES Income tax expense for the first quarter of both 2023 and 2022, primarily related to foreign and minor state taxes. The first quarter of 2022, as a result of a dividend paid from our China subsidiary to the USA parent company, included $442,000 of income tax withheld and paid. The effective tax rate differed from the statutory tax rate primarily due to the effect of valuation allowances, as well as foreign taxes. We have a valuation allowance of $9.3 million as of March 31, 2023. As of March 31, for both 2023 and 2022, our deferred tax assets and valuation allowance have been reduced by approximately $429,000 and $399,000, respectively, associated with the requirements of accounting for uncertain tax positions. Given the uncertainty created by our loss history, as well as the volatile and uncertain economic outlook for our industry and capital spending, we have limited the recognition of net deferred tax assets including our net operating losses and credit carryforwards and continue to maintain a valuation allowance for the full amount of the net deferred tax asset balance.

INCOME TAXES

3 Months Ended

Mar. 31, 2023

NOTE 8 – INCOME TAXES

Income tax expense for the first quarter of both 2023 and 2022, primarily related to foreign and minor state taxes. The first quarter of 2022, as a result of a dividend paid from our China subsidiary to the USA parent company, included $442,000 of income tax withheld and paid.

The effective tax rate differed from the statutory tax rate primarily due to the effect of valuation allowances, as well as foreign taxes. We have a valuation allowance of $9.3 million as of March 31, 2023. As of March 31, for both 2023 and 2022, our deferred tax assets and valuation allowance have been reduced by approximately $429,000 and $399,000, respectively, associated with the requirements of accounting for uncertain tax positions. Given the uncertainty created by our loss history, as well as the volatile and uncertain economic outlook for our industry and capital spending, we have limited the recognition of net deferred tax assets including our net operating losses and credit carryforwards and continue to maintain a valuation allowance for the full amount of the net deferred tax asset balance.