Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
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, 2021 and 2020 were as follows:

 

             
    Year Ended  
    December 31,  
    2021     2020  
Income (loss) before income taxes:                
Domestic   $ (8,187,662 )   $ (2,826,902 )
Foreign     80,000       63,527  
 Income (loss) before income taxes   $ (8,107,662 )   $ (2,763,375 )
SUMMARY OF COMPONENTS OF INCOME TAX PROVISION (BENEFIT)

Income tax provision (benefit) consists of the following for the years ended December 31, 2021 and 2020:

 

             
    Year Ended  
    December 31,  
    2021     2020  
Income tax provision (benefit):                
Current                
Federal   $ -     $ -  
State     -       -  
Foreign     15,000       3,563  
Total current     15,000       3,563  
Deferred:                
Federal     -       -  
State     -       -  
Foreign     -       -  
Total deferred     -       -  
Total income tax provision (benefit)   $ 15,000     $ 3,563  
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,  
    2021     2020  
      $       %       $       %  
Federal income tax provision (benefit) at statutory rate   $ 1,736,000       21 %   $ (580,000 )     21 %
State tax expense net of federal tax benefit     211,000       3 %     36,000       (1 )%
State tax expense federal impact     29,000       -       -       -  
Non-deductible expenses     (320,000 )     (4 )%     57,000       (2 )%
State rate change adjustment     (138,000 )     (2 )%     -       -  
Foreign taxes at rate different than US Taxes     (2,000 )     -       -       -  
Other true-ups     188,000       2.0 %     1,267,000       46 %
Change in valuation allowance     (1,689,000 )     (20.0 )%     (776,000 )     (28 )%
Income tax provision (benefit)   $ 15,000       -     $ 4,000       -  
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, 2021     December 31, 2020  
Deferred tax assets:                
Net operating loss carryforward   $ 2,455,000     $ 1,721,000  
Property plant and equipment and intangibles asset     132,000       124,000  
Stock-based compensation     1,133,000       186,000  
Total deferred tax assets   $ 3,720,000     $ 2,031,000  
                 
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   $ 3,720,000     $ 2,030,777  
Less: valuation allowance     (3,720,000 )     (2,030,777 )
Net deferred tax asset   $ -     $ -