INCOME TAXES (Tables)
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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:
SUMMARY
OF COMPONENTS OF EARNINGS BEFORE INCOME TAXES
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Year
Ended |
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December
31, |
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|
2021 |
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|
2020 |
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Income
(loss) before income taxes: |
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|
|
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|
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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:
SUMMARY
OF COMPONENTS OF INCOME TAX PROVISION (BENEFIT)
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Year
Ended |
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December
31, |
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|
|
2021 |
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|
2020 |
|
Income
tax provision (benefit): |
|
|
|
|
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|
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Current |
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|
|
|
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Federal |
|
$ |
- |
|
|
$ |
- |
|
State |
|
|
- |
|
|
|
- |
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Foreign |
|
|
15,000 |
|
|
|
3,563 |
|
Total
current |
|
|
15,000 |
|
|
|
3,563 |
|
Deferred: |
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|
|
|
|
|
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Federal |
|
|
- |
|
|
|
- |
|
State |
|
|
- |
|
|
|
- |
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Foreign |
|
|
- |
|
|
|
- |
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Total
deferred |
|
|
- |
|
|
|
- |
|
Total
income tax provision (benefit) |
|
$ |
15,000 |
|
|
$ |
3,563 |
|
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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:
SUMMARY
OF EFFECTIVE TAX RATE AND STATUTORY FEDERAL RATE
|
|
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 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
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Other
true-ups |
|
|
188,000 |
|
|
|
2.0 |
% |
|
|
1,267,000 |
|
|
|
46 |
% |
Change
in valuation allowance |
|
|
(1,689,000 |
) |
|
|
(20.0 |
)% |
|
|
(776,000 |
) |
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|
(28 |
)% |
Income
tax provision (benefit) |
|
$ |
15,000 |
|
|
|
- |
|
|
$ |
4,000 |
|
|
|
- |
|
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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:
SCHEDULE
OF DEFERRED TAX ASSETS AND LIABILITIES
|
|
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 |
|
|
|
|
|
|
|
|
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Deferred
tax liabilities: |
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|
|
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|
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Book
basis of property and equipment in excess of tax basis |
|
$ |
- |
|
|
$ |
- |
|
Total
deferred tax liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
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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 |
|
$ |
- |
|
|
$ |
- |
|
|