Annual report pursuant to Section 13 and 15(d)

17. Income Taxes (Tables)

v3.21.1
17. Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of deferred tax assets and liabilities

Net deferred tax liabilities consist of the following components as of December 31, 2020 and 2019:

 

    2020     2019  
Deferred tax assets:                
NOL Carryover   $ 11,945,900     $ 10,068,800  
Lease Liability     615,300       1,166,400  
Stock Compensation     722,200       –  
Warrants     335,000       –  
Deferred Revenue     456,900       –  
Other     81,300       36,700  
Subtotal     14,156,600       11,271,900  
Valuation Allowance     (13,603,100 )     (10,068,700 )
Deferred tax liabilities:                
Right of Use Assets     (551,900 )     (1,122,100 )
Other     (1,600 )     (81,100 )
Net Deferred Tax Asset   $ –     $ –  
Schedule of effective income tax rate reconciliation

The income tax provision differs from the amount of income tax determined by applying the U.S. federal tax rate to pretax income from continuing operations for the years ended December 31, 2020 and 2019 due to the following:

 

    2020     2019  
Income Tax Expense Computed at the Statutory Federal Rate   $ (84,350,700 )   $ (2,411,100 )
State Income Taxes, Net of Federal Tax Effect     (871,900 )     (613,300 )
Stock Compensation     1,333,300       38,700  
Conversion Option Revaluation     36,085,500       –  
Secured Convertible Notes     216,700       483,100  
Warrants     44,036,600       38,200  
Other     16,200       15,000  
Valuation Allowance     3,534,300       2,449,400  
    $ –     $ –