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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 11 – INCOME TAXES The Company accounts for income taxes in accordance with ASC 740 which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim period, disclosure and transition. There were no unrecognized tax benefits as of December 31, 2021 and 2020. The Company’s loss before income taxes from US and Foreign sources for the years ended December 31, 2021 and 2020, are as follows:
|  | 2021 |  |  | 2020 |
United States |  | $ | (16,466,423 | ) |  | $ | (8,899,719 | )
Outside United States |  |  | (1,198,341 | ) |  |  | (2,362,516 | )
Loss before income taxes |  | $ | (17,664,764 | ) |  | $ | (11,262,235 | )
The following table summarizes the significant differences between the U.S. Federal statutory tax rate and the Company’s effective tax rate for financial statement purposes for the years ended December 31, 2021 and 2020:
|  | 2021 |  |  | 2020 |
US Federal statutory tax rate |  |  | 21.00 | % |  |  | 21.00 | %
State taxes |  |  | 3.94 | % |  |  | 4.35 | %
Other deferred adjustments |  |  | -2.02 | % |  |  | 5.27 | %
Change in tax rates |  |  | -1.53 | % |  |  | - | %
Change in valuation allowance |  |  | -21.39 | % |  |  | -30.62 | %
|  |  | 0.00 | % |  |  | 0.00 | %
The Company has paid certain minimum taxes and other obligations during the years ended December 31, 2021, and 2020 of approximately $21,000 and $36,000, respectively. The tax effects of temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2021 and 2020 are summarized as follows:
|  | 2021 |  |  | 2020 |
Deferred tax assets |  |  |  |  |  |
Net operating loss |  | $ | 12,702,731 |  |  | $ | 8,472,849 |
Charitable contributions |  |  | - |  |  |  | 1,267 |
Stock options |  |  | 5,922,550 |  |  |  | 6,359,279 |
Federal tax credits |  |  | 303,556 |  |  |  | - |
Basis difference in intangible and fixed assets |  |  | (206,925 | ) |  |  | 64,848 |
Convertible note payable discount |  |  | - |  |  |  | 205,557 |
Accrued payroll |  |  | 169,242 |  |  |  | 186,159 |
Valuation allowance |  |  | (18,891,154 | ) |  |  | (15,289,959 | )
Total deferred tax asset |  | $ | - |  |  | $ | - |
As of December 31, 2021, the Company has available federal net operating loss carry forward of $51.7 million and state net operating loss carry forwards of $36.4 million. Operating loss carryforwards of approximately $14.4 million will expire through 2037 and the balance of $37.3 million have an indefinite life. Additionally, the Company has income tax net operating loss carryforwards related to our international operations which have an indefinite life. The Company assess the recoverability of its net operating loss carry forwards and other deferred tax assets and records a valuation allowance to the extent recoverability does not satisfy the “more likely than not” recognition criteria. The Company continues to maintain the valuation allowance until sufficient positive evidence exists to support full or partial reversal. As of December 31, 2021, the Company had a valuation allowance of approximately $18.9 million against its deferred tax assets, net of deferred tax liabilities, due to insufficient positive evidence, primarily consisting of losses within the taxing jurisdictions that have tax attributes and deferred tax assets.

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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=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 http://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 http://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 http://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 http://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 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 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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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