INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
|---|
| 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, 2022 and 2021 were as follows:
SUMMARY
OF COMPONENTS OF EARNINGS BEFORE INCOME TAXES
| |
|
2022 |
|
|
2021 |
|
| |
|
Year
Ended |
|
| |
|
December
31, |
|
| |
|
2022 |
|
|
2021 |
|
| Net loss after loss in equity method investment and before income taxes: |
|
|
|
|
|
|
|
|
| Domestic |
|
$ |
(9,449,000 |
) |
|
$ |
(8,188,000 |
) |
| Foreign |
|
|
362,000 |
|
|
|
80,000 |
|
|
Income
(loss) before income taxes
|
|
$ |
(9,087,000 |
) |
|
$ |
(8,108,000 |
) |
|
| SUMMARY OF COMPONENTS OF INCOME TAX PROVISION (BENEFIT) |
Income
tax provision (benefit) consists of the following for the years ended December 31, 2022 and 2021:
SUMMARY
OF COMPONENTS OF INCOME TAX PROVISION (BENEFIT)
| |
|
2022 |
|
|
2021 |
|
| |
|
Year
Ended |
|
| |
|
December
31, |
|
| |
|
2022 |
|
|
2021 |
|
| Income
tax provision (benefit): |
|
|
|
|
|
|
|
|
| Current |
|
|
|
|
|
|
|
|
| Federal |
|
$ |
- |
|
|
$ |
- |
|
| State |
|
|
- |
|
|
|
- |
|
| Foreign |
|
|
87,000 |
|
|
|
15,000 |
|
| Total
current |
|
|
87,000 |
|
|
|
15,000 |
|
| Deferred: |
|
|
|
|
|
|
|
|
| Federal |
|
|
- |
|
|
|
- |
|
| State |
|
|
- |
|
|
|
- |
|
| Foreign |
|
|
- |
|
|
|
- |
|
| Total
deferred |
|
|
- |
|
|
|
- |
|
| Total
income tax provision (benefit) |
|
$ |
87,000 |
|
|
$ |
15,000 |
|
|
| 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, |
|
| |
|
2022 |
|
|
2021 |
|
| |
|
$ |
|
|
$ |
|
| Federal
income tax provision (benefit) at statutory rate |
|
$ |
(1,984,000 |
) |
|
$ |
1,736,000 |
|
| State
tax expense net of federal tax benefit |
|
|
(411,000 |
) |
|
|
211,000 |
|
| State
tax expense federal impact |
|
|
45,000 |
|
|
|
29,000 |
|
| Non-deductible
expenses |
|
|
- |
|
|
|
(320,000 |
) |
| State
rate change adjustment |
|
|
(214,000 |
) |
|
|
(138,000 |
) |
| Foreign
taxes at rate different than US Taxes |
|
|
87,000 |
|
|
|
(2,000 |
) |
| Other
true-ups |
|
|
106,000 |
|
|
|
188,000 |
|
| Change
in valuation allowance |
|
|
2,458,000 |
|
|
|
(1,689,000 |
) |
| Income
tax provision (benefit) |
|
$ |
87,000 |
|
|
$ |
15,000 |
|
|
| 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:
SCHEDULE
OF DEFERRED TAX ASSETS AND LIABILITIES
| |
|
December
31, 2022 |
|
|
December
31, 2021 |
|
| Deferred
tax assets: |
|
|
|
|
|
|
|
|
| Net
operating loss carryforward |
|
$ |
3,658,000 |
|
|
$ |
2,455,000 |
|
| Property
plant and equipment and intangibles asset |
|
|
130,000 |
|
|
|
132,000 |
|
| Equity method investment loss |
|
|
441,000 |
|
|
|
- |
|
| Stock-based
compensation |
|
|
1,949,000 |
|
|
|
1,133,000 |
|
| Total
deferred tax assets |
|
$ |
6,178,000 |
|
|
$ |
3,720,000 |
|
| |
|
|
|
|
|
|
|
|
| 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 |
|
$ |
6,178,000 |
|
|
$ |
3,720,000 |
|
| Less:
valuation allowance |
|
|
(6,178,000 |
) |
|
|
(3,720,000 |
) |
| Net
deferred tax asset |
|
$ |
- |
|
|
$ |
- |
|
|