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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 9 – INCOME TAXES As of December 31, 2020, the Company has approximately $10.7 million of operating loss carryforwards for federal income tax reporting purposes that may be applied against future taxable income. Portions of the net operating loss carryforwards will begin to expire in the year 2021 if not utilized prior to that date, expiring during various year through 2038. There is no provision for income taxes because the Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. The net operating loss carryforwards could be subject to limitation in any given year in the event of a change in ownership as defined by IRC Section 382. The valuation allowance overall increased by approximately $1,269,000 and $148,000 during the year ended 2020 and 2019, respectively. The Company has fully reserved the deferred tax asset resulting from available net operating loss carryforwards. The income tax provision charged to continuing operations for the years ended December 31, 2020 and 2019 was as follows:
|  | December 31, |
|  | 2020 |  |  | 2019 |
Current: |  |  |  |  |  |  |  |
U.S. federal |  | $ | 152,100 |  |  | $ | (152,100 | )
State and local |  |  | 40,400 |  |  |  | (40,400 | )
|  | $ | 192,500 |  |  | $ | (192,500 | )
Deferred: |  |  |  |  |  |  |  |
U.S. federal |  |  | (70,000 | ) |  |  | 70,000 |
State and local |  |  | - |  |  |  | - |
|  | $ | (70,000 | ) |  | $ | 70,000 |
Provision for income taxes |  |  | 122,500 |  |  |  | (122,500 | )
The provision for income taxes differs from the expected amount of income tax expense (benefit) determined by applying a combined U.S. federal and state (Puerto Rico) income tax rate of 25% to pretax income (loss) for the years ended December 31, 2020 and 2019 as follows:
|  | December 31, |
|  | 2020 |  |  | 2019 |
Computed “expected” tax expense (benefit) |  | $ | (12,684,000 | ) |  | $ | (783,000 | )
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |  |  |
Permanent differences |  |  | 7,765,000 |  |  |  | 7,000 |
Apportionment of Puerto Rico income |  |  | 3,607,000 |  |  |  | 380,000 |
Nondeductible expenses |  |  | 140,000 |  |  |  | 173,000 |
Change in valuation allowance |  |  | 1,269,000 |  |  |  | 148,000 |
Other |  |  | 25,500 |  |  |  | (47,500 | )
|  | $ | 122,500 |  |  | $ | (122,500 | )
Net deferred tax liabilities consist of the following components as of December 31, 2020 and 2019:
|  | December 31, |
|  | 2020 |  |  | 2019 |
Deferred tax Liability: |  |  |  |  |  |  |  |
Other |  | $ | - |  |  | $ | 70,000 |
|  |  | - |  |  |  | 70,000 |
Deferred tax assets: |  |  |  |  |  |  |  |
Stock-based compensation |  |  | 716,000 |  |  |  | 716,000 |
Temporary differences |  |  | 113,000 |  |  |  | 44,000 |
Net operating loss carryforwards |  |  | 2,151,000 |  |  |  | 951,000 |
|  |  | 2,980,000 |  |  |  | 1,711,000 |
Less valuation allowance |  |  | (2,980,000 | ) |  |  | (1,711,000 | )

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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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