Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Summary of Components of Earnings Before Income Taxes

The components of earnings before income taxes for the years ended December 31, 2020 and 2019 were as follows:

 

    Year Ended  
    December 31,  
    2020     2019  
Income (loss) before income taxes:                
Domestic   $ (2,826,902 )   $ (1,436,516 )
Foreign     63,527       56,760  
    $ (2,763,375 )   $ (1,379,756 )
Summary of Components of Income Tax Provision (Benefit)

Income tax provision (benefit) consists of the following for the years ended December 31, 2020 and 2019:

 

    Year Ended  
    December 31,  
    2020     2019  
Income tax provision (benefit):                
Current                
Federal   $ -     $ -  
State     -       -  
Foreign     3,563       747  
Total current     3,563       747  
Deferred:                
Federal     -       -  
State     -       -  
Foreign     -       -  
Total deferred     -       -  
Total income tax provision (benefit)   $ 3,563     $ 747  
Summary of Effective Tax Rate and Statutory Federal Rate

A reconciliation of the income tax provision (benefit) by applying the statutory United States federal income tax rate to income (loss) before income taxes is as follows:

 

    Year Ended December 31,  
    2020     2019  
    $     %     $     %  
Federal income tax provision (benefit) at statutory rate   $ (580,309 )     21.00 %   $ (289,749 )     21.00 %
State tax expense net of federal tax benefit     35,833       (1.29 )     22,210       (1.61 )
Non-Deductible Expenses     56,545       (2.05 )     -       -  
Foreign taxes at rate different than US Taxes     236       (0.01 )     618       (0.05 )
Other True-ups     1,267,030       (45.85 )     -       -  
Change in valuation allowance     (775,772 )     28.07       267,668       (19.29 )
Income tax provision (benefit)   $ 3,563       (0.13 )%   $ (747 )     0.05 %
Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset is as follows:

 

    December 31, 2020     December 31, 2019  
Deferred tax assets:                
Net operating loss carryforward   $ 1,720,848     $ 1,255,005  
Property plant and equipment and intangibles asset     123,968       -  
Stock based compensation     185,961       -  
Total deferred tax assets   $ 2,030,777     $ 1,255,005  
                 
Deferred tax liabilities:                
Book basis of property and equipment in excess of tax basis   $ -     $ -  
Total deferred tax liabilities   $ -     $ -  
                 
Net deferred tax asset before valuation allowance   $ 2,030,777     $ 1,255,005  
Less: valuation allowance     (2,030,777 )     (1,255,005 )
Net deferred tax asset   $ -     $ -