|12 Months Ended|
Dec. 31, 2021
|Income Tax Disclosure [Abstract]|
NOTE H – INCOME TAXES
The provisions for income taxes for the years ended December 31, 2021 and 2020 are as follows:
A reconciliation of the federal statutory rate to the effective tax rate is as follows:
Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. Management has assessed the realizability of deferred tax assets and has determined there is sufficient evidence that all of the deferred tax assets may not be realized. As such, the Company has recorded a 100% valuation allowance against the
netdeferred tax assets of the U.S. consolidated group.
At December 31, 2021 and 2020 the deferred income tax assets and liabilities consisted of the following temporary differences:
At December 31, 2021 and 2020 the Company has federal
net operating loss carryforwards of approximately:
Inasmuch as it is possible to determine when or if the net operating losses will be utilized, a valuation allowance has been established to offset the benefit of the utilization of the net operating losses.
As of December 31, 2021, the Company had available
federal and state
t operating losses of approximately $71.8 million which can be utilized to offset future earnings of the Company. The utilization of the net operating losses is dependent upon the tax laws in effect at the time such losses can be utilized. Certain loss carryforwards begin to expire in 2021 and a portion may be used indefinitely. Should the Company experience a significant change in ownership, the utilization of net operating losses could be reduced.
The Company and its subsidiaries file tax returns in the U.S. Federal jurisdiction and various states.
The Company is no longer subject to U.S. federal tax examinations for tax years before and including December 31, 2017.
The Company is no longer subject to examination by state tax authorities for tax years before and including December 31, 2016.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef