Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.21.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2020
Disclosure Income Taxes Tables Abstract  
Schedule of Components of Income Tax Expense (Benefit)

The provisions for income taxes for the years ended December 31, 2020 and 2019 are as follows:

 

    2020   2019
Current:                
Federal   $ (4,778,000 )   $ (265,000 )
State     (2,206,000 )     (123,000 )
Deferred:                
Federal     2,246,000       (1,992,000 )
State     1,037,000       (920,000 )
Change in Valuation Allowance     3,701,000       3,300,000  
Provision for income taxes   $ —       $ —    
Schedule of Effective Income Tax Rate Reconciliation

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

 

    2020   2019
Federal statutory rate     21 %     21 %
State, net of federal tax benefit     6.98 %     6.98 %
Change in valuation allowance     (28 )%     (28 )%
Effective tax rate   $ —       $ —    
Schedule of deferred income tax assets for temporary differences

At December 31, 2020 and 2019 the deferred income tax assets consisted of the following:

 

    2020   2019
Deferred tax assets:   $ 18,264,000     $ 14,563,000  
Less: Valuation Allowance     (18,264,000 )     (14,563,000 )
Net deferred income taxes   $ —       $ —    
Summary of Operating Loss Carryforwards

At December 31, 2020 and 2019 the deferred income tax assets consisted of the following temporary differences:

 

    2020   2019
Net operating losses   $ 15,513,000     $ 8,530,000  
Share based compensation     361,000       269,000  
Accrued payroll     1,238,000       1,632,000  
Accrued interest     586,000       —    
Derivative liability     —         4,132,000  
Mandatorily redeemable equity instruments of subsidiary     566,000       —    
Total deferred tax assets     18,264,000       14,563,000  
Less: Valuation allowance     (18,264,000 )     (14,563,000 )
    $ —       $ —