XML 52 R18.htm IDEA: XBRL DOCUMENT
v3.24.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 12 – INCOME TAXES As of December 31, 2023, the Company has approximately $100.8 million of operating loss carryforwards for federal income tax reporting purposes that may be applied against future taxable income. All remaining net operating loss carryforwards were generated after 2017 and can be carried forward indefinitely. 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 Internal Revenue Code Section 382. The valuation allowance overall increased by approximately $5.4 million and $11.8 million during the years ended December 31, 2023 and 2022, 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, 2023 and 2022 was as follows: SCHEDULE OF INCOME TAX PROVISION CHARGES
|  | December 31, |
|  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |
U.S. federal |  | $ | - |  |  | $ | - |
State and local |  |  | 111,000 |  |  |  | 6,700 |
Foreign |  |  | 317,000 |  |  |  | - |
Total |  |  | 428,000 |  |  |  | 6,700 |
Deferred: |  |  |  |  |  |  |  |
U.S. federal |  |  | 1,470,000 |  |  |  | 1,719,000 |
State and local |  |  | (1,470,000 | ) |  |  | (1,365,000 | )
Foreign |  |  | - |  |  |  | - |
Total |  |  | - |  |  |  | 354,000 |
Provision for income taxes |  | $ | 428,000 |  |  | $ | 360,700 |
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, 2023 and 2022 as follows: SCHEDULE OF PROVISION DIFFERS FROM THE AMOUNT OF INCOME TAX
|  | December 31, |
|  |  | 2023 |  |  |  | 2022 |
Computed “expected” tax expense (benefit) |  | $ | (1,951,000 | ) |  | $ | (9,474,000 | )
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |  |  |
State taxes |  |  | (440,000 | ) |  |  | (714,000 | )
Permanent differences |  |  | 71,000 |  |  |  | 730,000 |
Apportionment of Puerto Rico income |  |  | (133,000 | ) |  |  | (108,000 | )
Nondeductible expenses |  |  | - |  |  |  | - |
GILTI, net of 250 deduction |  |  | 1,855,000 |  |  |  | - |
Dividends received deduction |  |  | (1,224,000 | ) |  |  | - |
Change in valuation allowance |  |  | 4,327,000 |  |  |  | 9,973,000 |
Rate differential |  |  | (2,125,000 | ) |  |  | - |
Other |  |  | 48,000 |  |  |  | (46,300 | )
Provision for income taxes |  | $ | 428,000 |  |  | $ | 360,700 |
Net deferred tax liabilities consist of the following components as of December 31, 2023 and 2022: SCHEDULE OF NET DEFERRED TAX LIABILITIES
|  | 2023 |  |  | 2022 |
|  | December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax liability: |  |  |  |  |  |  |  |
Other |  | $ | - |  |  | $ | - |
Deferred tax liability, Total |  |  | - |  |  |  | - |
Deferred tax assets: |  |  |  |  |  |  |  |
Stock-based compensation |  |  | 15,100,000 |  |  |  | 11,646,000 |
Sec 174 – software development |  |  | 298,000 |  |  |  | 142,000 |
Temporary differences |  |  | 2,465,000 |  |  |  | 2,389,000 |
Net operating loss carryforwards |  |  | 23,057,000 |  |  |  | 21,382,000 |
Deferred tax assets, Gross |  |  | 40,920,000 |  |  |  | 35,559,000 |
Less valuation allowance |  |  | (40,920,000 | ) |  |  | (35,559,000 | )
Deferred tax assets, Net |  | $ | - |  |  | $ | - |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration