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INCOME TAXES | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 13 – INCOME TAXES The Company accounts for income taxes in accordance with ASC Topic No. 740, Income Taxes. This standard requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carry forwards. As discussed in Notes 4 and 5, the Company recognized net deferred tax liabilities associated with the Precision Healing merger and the Scendia acquisition. As of December 31, 2022, prior to consideration of these deferred tax liabilities, the Company had net deferred tax assets in excess of the deferred tax liabilities being recognized, however, a 100% valuation allowance had previously been provided against the Company’s net deferred tax assets. As a result of the recording of the net deferred tax liabilities related to the Precision Healing merger and Scendia acquisition, the Company reviewed the valuation allowance and determined that it should be reduced by the amount of the deferred tax liabilities that were recognized. This resulted in a year-to-date income tax benefit of $5.8 million. After applying the provisions of Section 382 of the Internal Revenue Code, the unexpired net operating loss (“NOL”) carryforward at December 31, 2022 was approximately $32.5 million, of which, approximately $5.4 million, generated in 2017 and prior, will expire between 2023 and 2037. Under the Tax Cuts and Jobs Act, the NOL generated from 2018 through 2022, of approximately $27.1 million, will have an indefinite carryforward period but can generally only be used to offset 80% of taxable income in any particular year. The Company may be subject to certain limitations in its annual utilization of NOL carry forwards to off-set future taxable income pursuant to Section 382 of the Internal Revenue Code, which could result in NOLs expiring unused. The components of the deferred income tax assets and liabilities consisted of the following: SCHEDULE OF DEFERRED TAX ASSETS
|  | As of December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets |  |  |  |  |  |  |  |
Net operating loss carry forwards |  | $ | 6,818,547 |  |  | $ | 4,352,201 |
Inventory reserves |  |  | 43,678 |  |  |  | 70,221 |
Bad debt and other reserves |  |  | 92,286 |  |  |  | 561,944 |
Accrued expenses |  |  | - |  |  |  | 35,579 |
Research and development expenses |  |  | 707,076 |  |  |  | - |
Share-based compensation expense |  |  | 232,250 |  |  |  | - |
Other temporary differences |  |  | 26,102 |  |  |  | 1,134 |
Total deferred tax assets |  |  | 7,919,939 |  |  |  | 5,021,079 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | (5,919,626 | ) |  |  | (17,001 | )
Accrued expenses |  |  | (26,903 | ) |  |  | - |
Valuation allowance |  |  | (1,973,410 | ) |  |  | (5,004,078 | )
Net deferred tax asset |  | $ | - |  |  | $ | - |
A 100% valuation allowance has been provided for all deferred tax assets, as the ability of the Company to generate sufficient taxable income in the future is uncertain. Reconciliations of the expected federal income tax benefit based on the statutory income tax rate of 21% to the actual benefit for the years ended December 31, 2022 and 2021 are listed below. SCHEDULE OF INCOME TAX EXPENSE (BENEFIT)
|  | For the Year Ended December 31, |
|  | 2022 |  |  | 2021 |
Expected federal income tax benefit |  | $ | 2,851,758 |  |  | $ | 1,663,601 |
NOL carryover adjusted for expiration |  |  | 46,936 |  |  |  | (29,730 | )
Equity method investment loss |  |  | (79,723 | ) |  |  | (129,555 | )
Meals and entertainment |  |  | (4,843 | ) |  |  | (7,439 | )
Share-based compensation |  |  | (249,516 | ) |  |  | 120,924 |
Research and development expenses |  |  | (707,076 | ) |  |  | - |
Other temporary differences |  |  | 329,829 |  |  |  | (46,683 | )
Change in valuation allowance |  |  | 3,657,431 |  |  |  | (1,571,118 | )
Income tax expense (benefit) |  | $ | 5,844,796 |  |  | $ | - |
All tax years starting with 2019 are open for examination.

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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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://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 https://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 https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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