Global Clean Energy Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

The provisions for income taxes for the years ended December 31, 2021 and 2020 are as follows:

	Year ended December 31, 2021			Year ended December 31, 2020
Current:
Federal	$	-		$	(4,778,000	)
State		-			(2,206,000	)
Foreign		-			-
		-			(6,984,000)
Deferred:
Federal		(841,000	)		2,246,000
State		(280,000	)		1,037,000
Foreign		-			-
Change in v aluation a llowance		-			3,701,000
		(1,121,000	)		6,984,000

Income tax benefit	$	(1,121,000	)	$	-

A reconciliation of the federal statutory rate to the effective tax rate is as follows:

	Year ended December 31, 2021			Year ended December 31, 202 0

Federal statutory rate		21	%		21	%
State, net of federal tax benefit		7	%		7	%
Change in valuation allowance:		(26	)%		(28	)%
Effective tax rate		2	%		-

At December 31, 2021 and 2020 the deferred income tax assets and liabilities consisted of the following temporary differences:

	As of December 31, 2021			As of D ece mber 31, 202 0
Deferred tax assets:
Net operating losses	$	20,103,000		$	15,513,000
Share based compensation		598,000			361,000
Accrued vacation		111,000			-
Accrued payroll		616,000			1,238,000
Accrued interest		519,000			586,000
Lease liabilities		420,000			-
Fair value of Warrant Commitment Liability		898,000			-
Fair value - Class B Units		2,268,000			566,000
Total deferred assets		25,533,000			18,264,000
Less valuation allowance for deferred tax assets		(23,651,000	)		(18,264,000	)
Net deferred tax asset		1,882,000			-
Deferred tax liabilities:
Property, plant and equipment		(328,000	)		-
Intangibles		(2,759,000	)		-
Lease assets		(419,000	)		-
Total deferred tax liabilities		(3,506,000	)		-
Net deferred tax liabilit y	$	(1,624,000	)	$	-

At December 31, 2021 and 2020 the Company has federal

and state

net operating loss carryforwards of approximately: