| Schedule of Income (Loss) Before Provision for Income Taxes |
For
financial reporting purposes, Income (Loss) before provision for income taxes, includes the following components:
Schedule of Income (Loss) Before
Provision for Income Taxes
| | |
2025 | | |
2024 | |
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| Domestic | |
$ | (452,000 | ) | |
$ | (1398,000 | ) |
| Foreign | |
| (2,078,000 | ) | |
| 101,000 | |
| Total loss before income taxes | |
$ | (2,530,000 | ) | |
$ | (1,499,000 | ) |
|
| Schedule of Income Tax Provision (Benefit) Related to Operations |
Income
tax provision (benefit) differs from the amounts computed by applying the statutory income tax rate of 21% to pretax loss as follows:
Schedule
of Income Tax Provision (Benefit) Related to Operations
| | |
| | | |
| | | |
| | | |
| | |
| | |
Year Ended December 31, | |
| U.S. Federal provision (benefit) | |
2025 | | |
2024 | |
| At Statutory Rate | |
$ | (531,000 | ) | |
| 21.00 | % | |
$ | (315,000 | ) | |
| 21.00 | % |
| Change in Valuation Allowance | |
| (135,000 | ) | |
| 5.32 | % | |
| 110,000 | | |
| (7.33 | )% |
| Foreign Tax Effects | |
| 18,000 | | |
| (0.72 | )% | |
| 21000 | | |
| (1.40 | )% |
| Nontaxable or Nondeductible Items | |
| 6,000 | | |
| (0.23 | )% | |
| 47,000 | | |
| (3.10 | )% |
| Net Operating Loss Adjustment | |
| - | | |
| - | | |
| 56000 | | |
| (3.77 | )% |
| Fixed Asset Impairment | |
| 418,000 | | |
| (16.52 | )% | |
| - | | |
| - | |
| Expiring Tax Attributes | |
| 224,000 | | |
| (8.85 | )% | |
| 81,000 | | |
| (5.40 | )% |
| Total provision (benefit) | |
$ | | | |
| - | | |
$ | | | |
| - | |
|
| Schedule of Deferred Tax Assets and Liabilities |
Deferred
income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred
tax assets and liabilities are as follows:
Schedule
of Deferred Tax Assets and Liabilities
| | |
2025 | | |
2024 | |
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| Deferred Tax Assets: | |
| | | |
| | |
| Federal & State NOL Carryforward | |
$ | 5,421,000 | | |
$ | 5,391,000 | |
| Foreign Tax Credit & Other Credits | |
| - | | |
| 224,000 | |
| Capitalized R&D | |
| 146,000 | | |
| 128,000 | |
| Reserves and Accruals | |
| 188,000 | | |
| 140,000 | |
| Capital Loss Carryforward | |
| 2,360,000 | | |
| 2,360,000 | |
| Unicap 263A Adjustment | |
| 254,000 | | |
| 246,000 | |
| Lease liability | |
| 1,058,000 | | |
| 1,232,000 | |
| Foreign NOL Carryforward | |
| 129,000 | | |
| 28,000 | |
| Fixed Assets & Intangibles | |
| 286,000 | | |
| 279,000 | |
| Total Gross deferred tax assets | |
| 9,842,000 | | |
| 10,028,000 | |
| Less: Val. Allowance | |
| (8,713,000 | ) | |
| (8,702,000 | ) |
| Total Deferred Tax Assets | |
| 1,129,000 | | |
| 1,326,000 | |
| | |
| | | |
| | |
| Deferred Tax Liabilities: | |
| | | |
| | |
| Right of use operating leases | |
| 1,129,000 | | |
| 1,326,000 | |
| Total Gross deferred tax liabilities | |
| 1,129,000 | | |
| 1,326,000 | |
| Net Deferred Tax Assets | |
$ | - | | |
$ | - | |
|
| Schedule of Reconciliation Total Change in Valuation Allowance |
As
required under ASU 2023-09, the Company has included only the portion of the valuation allowance related to federal deferred tax assets
in the “change in valuation allowance” line of the rate reconciliation. The following table presents a reconciliation of
the total change in the valuation allowance:
Schedule of Reconciliation Total
Change in Valuation Allowance
| | |
2025 | | |
2024 | |
| | |
Year Ended December 31, | |
| | |
2025 | | |
2024 | |
| Beginning Balance | |
$ | 8,702,000 | | |
$ | 8,476,000 | |
| Change charged to income tax expense | |
| 11,000 | | |
| 226,000 | |
| Ending Balance | |
$ | 8,713,000 | | |
$ | 8,702,000 | |
|