Annual report pursuant to Section 13 and 15(d)

FEDERAL AND STATE INCOME TAXES (Tables)

v3.22.0.1
FEDERAL AND STATE INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes

Income tax expense consisted of the following:

           
    Year Ended
December 31,
2021
  Year Ended
December 31,
2020
 
State income tax:          
Current, net of refund   $ (12,800 ) $ (17,800 )
Federal income tax:              
Deferred     1,814,418     (62,967 )
Current         62,967  
Income tax benefit/(expense)   $ 1,801,618   $ (17,800 )
Schedule of reconciliation of income taxes

The reconciliation of income taxes shown in the financial statements and amounts computed by applying the Federal expected tax rate of 21% for year 2021 and 2020 is as follows:

           
    Year Ended
December 31,
2021
  Year Ended
December 31,
2020
 
           
Loss before taxes   $ (6,364,441 ) $ (1,194,263 )
Income taxes computed at the federal statutory rate   $ 1,336,533   $ 250,795  
State income and franchise tax     (12,800 )   (17,800 )
Permanent differences and other     477,885     (250,795 )
Income tax benefit/(expense)   $ 1,801,618   $ (17,800 )
Schedule of components of deferred tax assets

The significant components of deferred income tax assets, net are as follows:

 

    December 31,
2021
  December 31,
2020
 
           
Deferred compensation cost   $ 389,981   $ 239,036  
Depreciation and amortization     (116,911 )   (135,092 )
R&D credit     142,538        
NOL     1,507,982        
Allowance for bad debts and other     17,664     21,330  
Deferred income tax assets, net   $ 1,941,254   $ 125,274