Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
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, 2020 and 2019:

 

    December 31,  
    2020     2019  
Goodwill and intangible assets   $ (41,780 )   $ (44,715 )
Developed technology     (7,010 )     (25,985 )
Derivative liability     (112,564 )     (112,564 )
Property and equipment     3,378       18,399  
Other deferred tax assets     23,627       42,678  
Settlements     473,302       150,290  
Stock based compensation     95,103       331,731  
Net operating loss     8,017,170       7,161,406  
Valuation allowance     (8,637,265 )     (7,742,494 )
Net deferred tax liability   $ (186,039 )   $ (221,254 )

Schedule of Benefits for Income Taxes

The benefit for income taxes for the years ended December 31, 2020 and 2019 consists of the following:

 

    Year Ended December 31,  
    2020     2019  
Federal:            
Current provision   $ -     $ -  
Deferred tax benefit     (27,288 )     (134,163 )
    $ (27,288 )   $ (134,163 )
State:                
Current provision   $ -     $ -  
Deferred tax benefit     (7,927 )     (43,338 )
    $ (7,927 )   $ (43,338 )
Foreign:                
Current provision   $ -     $ -  
Deferred provision (benefit)     -       -  
    $ -     $ -  
                 
Income tax expense benefit   $ (35,215 )   $ (177,501 )

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:

 

    Year Ended December 31,  
    2020     2019  
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     -21.4 %     -13.5 %
Permanent items     -3.4 %     -0.1 %
Rate change     0.0 %     -2.6 %
Other     -1.5 %     -4.9 %
      0.8 %     6.0 %