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]  
Schedule of Net Deferred Tax Assets and Liabilities

The Company has the following net deferred tax assets and liabilities at December 31, 2021 and 2020:

 

    2021     2020  
    December 31,  
    2021     2020  
Goodwill and intangible assets   $ (38,346 )   $ (41,780 )
Developed technology     (11,251 )     (7,010 )
Derivative liability     (112,564 )     (112,564 )
Property and equipment     (8,023 )     3,378  
Other deferred tax assets     141,745       23,627  
Settlements     381,026       473,302  
Stock based compensation     107,028       95,103  
Net operating loss     8,671,958       8,017,170  
Valuation allowance     (9,293,933 )     (8,637,265 )
Net deferred tax liability   $ (162,360 )   $ (186,039 )
Schedule of Benefits for Income Taxes

The benefit for income taxes for the years ended December 31, 2021 and 2020 consists of the following:

 

    2021     2020  
    Year Ended December 31,  
    2021     2020  
Federal:                
Current provision   $ -     $ -  
Deferred tax benefit     (18,764 )     (27,288 )
 Total Federal   $ (18,764 )   $ (27,288 )
State:                
Current provision   $ -     $ -  
Deferred tax benefit     (2,776 )     (7,927 )
 Total State   $ (2,776 )   $ (7,927 )
Foreign:                
Current provision   $ -     $ -  
Deferred provision (benefit)     -       -  
 Total Foreign   $ -     $ -  
                 
Income tax expense benefit   $ (21,540 )   $ (35,215 )
Schedule of Reconciliation of Statutory Federal Income Tax Rate

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:

 

    2021     2020  
    Year Ended December 31,  
    2021     2020  
Expected federal statutory rate     21.0 %     21.0  %
State income taxes, net of federal benefit     6.1 %     6.1  %
Impairment charge     0.0 %     0.0  %
Valuation allowance     (23.0 )%     (21.4 )%
Permanent items     (2.2 )%     (3.4 )%
Rate change     0.0 %     0.0  %
Other     (1.1 )%     (1.5 )%
 Effective income tax rate     0.8 %     0.8  %