Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

Note 6 – Income Taxes 

 

The Company is subject to United States federal income taxes at an approximate rate of 21%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows: 

               
    Year Ended     Year Ended  
    December 31,     December 31,  
    2021     2020  
Income tax benefit computed at the statutory rate   $ 2,946,000     $ 1,986,000  
Tax effect of:                
Non-deductible expenses     (100,000 )     (70,000 )
Change in valuation allowance     (2,846,000 )     (1,916,000 )
Provision for income taxes   $     $  

 

Significant components of the Company’s deferred tax assets and liabilities after applying enacted corporate income tax rates are as follows: 

               
    As of     As of  
    December 31,     December 31,  
    2021     2020  
Deferred income tax assets                
Net operating losses   $ 5,763,000     $ 2,771,000  
Stock-based compensation     533,000       271,000  
Deferred income tax liability                
Prepaid expenses     (714,000 )     (306,000 )
Valuation allowance     (5,582,000 )     (2,736,000 )
Net deferred income tax assets   $     $  

 

The Company has an operating loss carry forward of approximately $27,764,000, which expires commencing in 2037.