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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
The following is a geographical breakdown of income/loss before the provision for income tax, for the years ended December 31, 2021 and 2020 | The following is a geographical breakdown of income/loss before the provision for income tax, for the years ended December 31, 2021 and 2020:
|  | 2021 |  |  | 2020 |
Pre-tax income (loss) |  |  |  |  |  |  |  |
U.S. Federal |  | $ | (24,644,000 | ) |  | $ | (32,382,000 | )
Foreign |  |  | 803,000 |  |  |  | (1,030,000 | )
Total |  | $ | (23,841,000 | ) |  | $ | (33,412,000 | )
Schedule of deferred tax assets | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. Significant components of the Company’s deferred tax assets are as follows: Schedule of deferred tax assets
|  | 2021 |  |  | 2020 |
Deferred tax asset: |  |  |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | 361,000 |  |  | $ | 359,000 |
Unrealized losses |  |  | 5,413,000 |  |  |  | 10,000 |
Obsolete inventory |  |  | 375,000 |  |  |  | 3,000 |
Stock compensation |  |  | 1,915,000 |  |  |  | 881,000 |
Other carryforwards |  |  | 132,000 |  |  |  | 484,000 |
Net operating loss carryforwards |  |  | 8,716,000 |  |  |  | 5,913,000 |
Lease liability |  |  | 888,000 |  |  |  | 798,000 |
Credit loss |  |  | 560,000 |  |  |  | 559,000 |
Accrued expenses |  |  | 2,157,000 |  |  |  | 934,000 |
Total deferred tax asset |  |  | 20,517,000 |  |  |  | 9,941,000 |
Deferred tax liability: |  |  |  |  |  |  |  |
Right-of-use assets |  |  | (857,000 | ) |  |  | (756,000 | )
Fixed assets, net |  |  | (3,937,000 | ) |  |  | (160,000 | )
Intangible assets, net |  |  | (256,000 | ) |  |  | (1,000 | )
Total deferred income tax liabilities |  |  | (5,050,000 | ) |  |  | (917,000 | )
Net deferred income tax assets |  |  | 15,467,000 |  |  |  | 9,024,000 |
Valuation allowance |  |  | (15,467,000 | ) |  |  | (9,038,000 | )
Deferred tax asset (liability), net |  | $ | - |  |  | $ | (14,000 | )
Schedule of reconciliation of income tax attributable to operations | The net income tax provision (benefit) consisted of the following: Schedule of net income tax benefit
|  | 2021 |  |  | 2020 |
Current |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 69,000 |  |  | $ | - |
U.S. State |  |  | 35,000 |  |  |  | - |
Foreign |  |  | 26,000 |  |  |  | 25,000 |
Total current provision |  |  | 130,000 |  |  |  | 25,000 |
Deferred |  |  |  |  |  |  |  |
U.S. Federal |  |  | - |  |  |  | - |
U.S. State |  |  | - |  |  |  | - |
Foreign |  |  | - |  |  |  | (49,000 | )
Total deferred provision (benefit) |  |  | 130,000 |  |  |  | (24,000 | )
Total provision (benefit) for income taxes |  | $ | 130,000 |  |  | $ | (24,000 | )
The Company’s effective tax rates were 0.9% and (0.1%) for the years ended December 31, 2021 and 2020, respectively. During the year ended December 31, 2021, the effective tax rate differed from the U.S. federal statutory rate primarily due to the change in valuation allowance. The reconciliation of income tax attributable to operations computed at U.S. Federal statutory income tax rates of 21% to income tax expense is as follows: Schedule of reconciliation of income tax attributable to operations
|  | 2021 |  |  | 2020 |
Expected federal income tax benefit |  |  | 21.0 | % |  |  | 21.0 | %
State taxes net of federal benefit |  |  | 6.1 | % |  |  | 8.1 | %
Foreign rate differential |  |  | 0.3 | % |  |  | -0.3 | %
Section 382 limitation |  |  | 0.0 | % |  |  | -34.7 | %
PPP forgiveness |  |  | 0.4 | % |  |  | 0.0 | %
Effect of change in valuation allowance |  |  | -26.0 | % |  |  | 21.1 | %
Beneficial conversion feature |  |  | 0.0 | % |  |  | -0.1 | %
Deconsolidation of I.AM |  |  | 0.0 | % |  |  | 1.5 | %
Loss on extinguishment of debt |  |  | 0.0 | % |  |  | -9.8 | %
Return to provision adjustment |  |  | 0.0 | % |  |  | -7.8 | %
Permanent differences |  |  | -0.1 | % |  |  | 0.0 | %
IRC Section 162(m) compensation limitation |  |  | -0.7 | % |  |  | 0.0 | %
Excess tax benefit - windfall/(shortfall) |  |  | 0.7 | % |  |  | 0.0 | %
Other |  |  | -2.6 | % |  |  | 0.9 | %
Income tax benefit |  |  | -0.9 | % |  |  | -0.1 | %
Schedule of reconciliation of income tax attributable to operations | The Company’s effective tax rates were 0.9% and (0.1%) for the years ended December 31, 2021 and 2020, respectively. During the year ended December 31, 2021, the effective tax rate differed from the U.S. federal statutory rate primarily due to the change in valuation allowance. The reconciliation of income tax attributable to operations computed at U.S. Federal statutory income tax rates of 21% to income tax expense is as follows: Schedule of reconciliation of income tax attributable to operations
|  | 2021 |  |  | 2020 |
Expected federal income tax benefit |  |  | 21.0 | % |  |  | 21.0 | %
State taxes net of federal benefit |  |  | 6.1 | % |  |  | 8.1 | %
Foreign rate differential |  |  | 0.3 | % |  |  | -0.3 | %
Section 382 limitation |  |  | 0.0 | % |  |  | -34.7 | %
PPP forgiveness |  |  | 0.4 | % |  |  | 0.0 | %
Effect of change in valuation allowance |  |  | -26.0 | % |  |  | 21.1 | %
Beneficial conversion feature |  |  | 0.0 | % |  |  | -0.1 | %
Deconsolidation of I.AM |  |  | 0.0 | % |  |  | 1.5 | %
Loss on extinguishment of debt |  |  | 0.0 | % |  |  | -9.8 | %
Return to provision adjustment |  |  | 0.0 | % |  |  | -7.8 | %
Permanent differences |  |  | -0.1 | % |  |  | 0.0 | %
IRC Section 162(m) compensation limitation |  |  | -0.7 | % |  |  | 0.0 | %
Excess tax benefit - windfall/(shortfall) |  |  | 0.7 | % |  |  | 0.0 | %
Other |  |  | -2.6 | % |  |  | 0.9 | %
Income tax benefit |  |  | -0.9 | % |  |  | -0.1 | %

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