Annual report pursuant to Section 13 and 15(d)

FEDERAL AND STATE INCOME TAXES (Tables)

v3.22.4
FEDERAL AND STATE INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes

Income tax expense consisted of the following:

           
    Year Ended
December 31,
2022
  Year Ended
December 31,
2021
 
State income tax:          
Current, net of refund   $ 0   $ (12,800 )
Federal income tax:              
Deferred     2,014,018     1,814,418  
Current          
Income tax benefit/(expense)   $ 2,014,018   $ 1,801,618  
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 2022 and 2021 is as follows:

           
    Year Ended
December 31,
2022
  Year Ended
December 31,
2021
 
           
Loss before taxes   $ (10,675,160 ) $ (6,364,441 )
Income taxes computed at the federal statutory rate   $ 2,241,784   $ 1,336,533  
State income and franchise tax     (0 )   (12,800 )
Permanent differences and other     (227,766 )   477,885  
Income tax benefit/(expense)   $ 2,014,018   $ 1,801,618  
Schedule of components of deferred tax assets

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

 

    December 31,
2022
  December 31,
2021
 
           
Deferred compensation cost   $ 557,931   $ 389,981  
Depreciation and amortization     (624,184 )   (116,911 )
R&D credit     142,030     142,538  
NOL     2,956,685     1,507,982  
Allowance for bad debts and other     935,018     17,664  
Deferred income tax assets, net   $ 3,967,480   $ 1,941,254