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INCOME TAXES | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | NOTE 11 – INCOME TAXES The recognized deferred tax asset is based upon the expected utilization of its benefit from future taxable income. The Company has federal net operating loss (“NOL”) carryforwards of approximately $5,800,000 as of December 31, 2020, which is subject to limitations under Section 382 of the Internal Revenue Code. These carryforward losses are available to offset future taxable income and begin to expire in the year 2024 to 2033. The foregoing amounts are management’s estimates and the actual results could differ from those estimates. Future profitability in this competitive industry depends on continually obtaining and fulfilling new profitable sales agreements and modifying products. The inability to obtain new profitable contracts could reduce estimates of future profitability, which could affect the Company’s ability to realize the deferred tax assets. Significant components of the Company’s deferred tax assets and liabilities are summarized as follows:
|  | December 31, |  |  | December 31, |
|  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carry forwards |  | $ | 1,431,000 |  |  | $ | 1,517,482 |
Long lived assets |  |  | 117,000 |  |  |  | 181,000 |
Share based payments |  |  | 6,000 |  |  |  | 13,000 |
Allowance for doubtful accounts |  |  | 107,000 |  |  |  | 109,000 |
Other |  |  | 13,084 |  |  |  | 15,000 |
Deferred tax asset |  |  | 1,674,084 |  |  |  | 1,835,482 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Installment sale |  |  | - |  |  |  | (346,000 | )
Long lived assets |  |  | (173,000 | ) |  |  | (278,000 | )
Deferred tax liabilities |  |  | (173,000 | ) |  |  | (624,000 | )
Net deferred tax asset |  |  | 1,501,084 |  |  |  | 1,211,482 |
Less: Valuation allowance |  |  | (462,000 | ) |  |  | (337,000 | )
Net deferred tax asset |  | $ | 1,039,084 |  |  |  | 874,482 |
For the year ended December 31, 2020, the Company’s Federal and State provision requirements were calculated based on the estimated tax rate. The Federal effective rate is higher than the statutory rate primarily due to 50% of meals, 100% entertainment expense which are not tax deductible. The total tax provision for the year ended December 31, 2020 was $47,391. For the year ended December 31, 2019, the Company’s Federal and State provision requirements were calculated based on the estimated tax rate. The Federal effective rate is higher than the statutory rate primarily due to change in federal statutory rate described above and Incentive Stock Options (ISO) and 50% of meals, 100% entertainment expense which are not tax deductible. The total tax benefit for the year ended December 31, 2019 was $455,006. A reconciliation of the statutory income tax rate to the effective rate is as follows for the period December 31, 2020 and 2019:
|  | December 31, |  |  | December 31, |
|  | 2020 |  |  | 2019 |
Federal income tax rate |  |  | 21 | % |  |  | 21 | %
State income tax, net of federal benefit |  |  | 7 | % |  |  | 6 | %
Permanent items |  |  | 3 | % |  |  | - | %
Return to provision for prior year |  |  | (7 | %) |  |  | - | %
Other |  |  | (3 | %) |  |  | (3 | %)
Effective income tax rate |  |  | 21 | % |  |  | 24 | %
Income tax provision (benefit) from continuing operations:
|  | Year Ended |
|  | December 31, |  |  | December 31, |
|  | 2020 |  |  | 2019 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 136,083 |  |  | $ | - |
State and local |  |  | 75,910 |  |  |  | - |
Total current tax provision (benefit) |  |  | 211,993 |  |  |  | - |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (115,221 | ) |  |  | (342,006 | )
State and local |  |  | (49,381 | ) |  |  | (113,000 | )
Total deferred tax provision (benefit) |  |  | (164,602 | ) |  |  | (455,006 | )
Total provision (benefit) |  | $ | 47,391 |  |  |  | (455,006 | )

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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