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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
INCOME TAXES |
INCOME TAXES | NOTE 15 — INCOME TAXES The income tax provision reconciled to the tax computed at the statutory from continuing operations Federal rate follows:
|  | 2021 |  |  | 2020 |
Tax Expense at Statutory Rate |  | $ | 2,133,953 |  |  | $ | 1,364,191 |
Valuation Allowance |  |  | (1,787,132 | ) |  |  | (1,371,195 | )
Non-Deductible Expenses and Other |  |  | 3,501 |  |  |  | 7,004 |
PPP Loan Forgiveness |  |  | (350,322 | ) |  |  | - |
State Taxes, Net of Federal Benefit |  |  | 112,808 |  |  |  | 89,618 |
Income tax expense |  | $ | 112,808 |  |  | $ | 89,618 |
Current |  | $ | 112,808 |  |  | $ | 89,618 |
Total |  | $ | 112,808 |  |  | $ | 89,618 |
|  |  |  |  |  |  | - |
Deferred income taxes are comprised of the following at December 31, 2021 and 2020: |  |  |  |  |  |  |  |
|  | 2021 |  |  | 2020 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Inventories |  | $ | 39,433 |  |  | $ | 22,620 |
Stock options and other |  |  | 6,836 |  |  |  | 6,836 |
Contingencies and accruals |  |  | 224,240 |  |  |  | 28,580 |
Property and equipment |  |  | (297,984 | ) |  |  | (256,065 | )
Net operating loss carryforward |  |  | 4,500,023 |  |  |  | 6,527,548 |
Goodwill and intangibles |  |  | 40,945 |  |  |  | 27,085 |
Total deferred tax assets, net |  |  | 4,513,493 |  |  |  | 6,356,604 |
Valuation allowance |  | $ | (4,513,493 | ) |  | $ | (6,356,604 | )
Net Deferred tax asset |  |  | - |  |  |  | - |
As of December 31, 2021, the Company had $2,729,636 of net operating loss carry-forwards, related to the Superior Galleries acquisition which may be available to reduce taxable income in future years, subject to the applicable Internal Revenue Code Section 382 limitations. As of December 31, 2021, the Company had approximately $18,699,047 of net operating loss carry-forwards related to Superior Galleries’ post acquisition operating losses and other operating losses incurred by the Company’s other operations. These carry-forwards will expire, starting in 2026 if not utilized. As of December 31, 2021, the Company has approximately $4.5 million in net deferred tax assets relating to approximately $21.4 million of net operating losses that will begin to expire in 2026 if not used. Due to uncertain current market conditions arising from the COVID-19 pandemic and various strains, the rising threat of inflation, rising interest rates, stock market volatility and the threat of a regional war conflict in Europe spreading, it is unfeasible, with any degree of accuracy, to predict the future results of Company operations. Due to the reasons listed above, a full valuation allowance was recorded against our net deferred tax assets.

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