Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income tax benefit

Year Ended December 31	2020			2019
Current taxes - Federal	$	(233,000	)	$	-
Current taxes - State		42,000			38,000
Deferred taxes - Federal		-			(402,000	)
Deferred taxes - State		-			(60,000	)
Income tax benefit	$	(191,000	)	$	(424,000	)

Reconciliation of effective federal income tax rate

Year Ended December 31	2020			2019
Federal statutory rate		21.0	%		21.0	%
Stock-based awards		(0.8	)		(0.7	)
State taxes		3.6			3.2
Other permanent differences		(0.3	)		(0.6	)
Impact of uncertain tax positions		(0.7	)		(0.5	)
Valuation allowance		(19.6	)		(15.4	)
Other		0.8			0.1
Effective federal income tax rate		4.0	%		7.1	%

Deferred tax assets (liabilities)

	As Restated
As of December 31	2020	2019
Deferred tax assets
Accrued expenses	$ 376,000	$ 260,000
Inventory reserve	9,000	5,000
Stock-based awards	65,000	88,000
Reserve for bad debts	33,000	16,000
Net operating loss and credit carryforwards	1,422,000	715,000
Other	47,000	26,000
Depreciation	52,000	-
Valuation allowance	(1,946,000)	(1,003,000)
Total deferred tax assets	$ 58,000	$ 107,000
Deferred tax liabilities
Depreciation	$ -	$ (18,000)
Prepaid expenses	(58,000)	(89,000)
Total deferred tax liabilities	(58,000)	(107,000)
Net deferred income tax liabilities	$ -	$ -

Uncertain tax positions

Balance at January 1, 2019	$	613,000
Increases due to interest and state tax		30,000
Balance at December 31, 2019		643,000
Increases due to interest and state tax		34,000
Balance at December 31, 2020	$	677,000