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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | 11. Income Taxes a) The income tax expense for the year ended December 31, 2020 and 2019 is reconciled per the schedule below:
|  | 2020 |  |  | 2019 |
Net loss before income taxes |  | $ | (1,187,620 | ) |  | $ | (359,034 | )
Depreciation |  |  | 26,962 |  |  |  | (10,956 | )
Non-deductible portion of meals and entertainment |  |  | 586 |  |  |  | 1,115 |
Expenses paid in shares |  |  | 415,666 |  |  |  | - |
Interest on lease liability |  |  | 5,039 |  |  |  | - |
Lease payments |  |  | (31,292 | ) |  |  | - |
Gain on impairment |  |  | - |  |  |  | 54,292 |
Gain Settlement of Debt |  |  | (184,868 | ) |  |  | (250,778 | )
Adjusted net loss for tax purposes |  |  | (955,527 | ) |  |  | (565,362 | )
Statutory rate |  |  | 25.60 | % |  |  | 24.63 | %
|  |  | (244,658 | ) |  |  | (139,248 | )
Increase in valuation allowance |  |  | 244,658 |  |  |  | 139,248 |
Provision for income taxes |  | $ | - |  |  | $ | - |
b) Deferred Income Tax Assets The tax effects of temporary differences that give rise to the deferred income tax assets at December 31, 2020 and 2019 are as follows:
|  | 2020 |  |  | 2019 |
Net operating loss carry forwards |  | $ | 1,365,333 |  |  | $ | 1,113,488 |
Transaction costs |  |  | - |  |  |  | - |
|  |  | 1,365,333 |  |  |  | 1,113,488 |
Deferred tax assets not recognized |  |  | (1,365,333 | ) |  |  | (1,113,488 | )
Net deferred tax asset |  | $ | - |  |  | $ | - |
c) Cumulative Net Operating Losses The Company has non-capital losses carried forward of approximately $5,897,000 available to reduce future years’ taxable income. These losses will expire as follows:
|  | United States |  |  | Canada |  |  | Total |
2034 |  | $ | 53,000 |  |  | $ | 183,000 |  |  | $ | 236,000 |
2035 |  |  | 161,000 |  |  |  | 368,000 |  |  |  | 529,000 |
2036 |  |  | 868,000 |  |  |  | 262,000 |  |  |  | 1,130,000 |
2037 |  |  | 1,472,000 |  |  |  | 59,000 |  |  |  | 1,531,000 |
2038 |  |  | 431,000 |  |  |  | 520,000 |  |  |  | 951,000 |
2039 |  |  | 372,000 |  |  |  | 193,000 |  |  |  | 565,000 |
2040 |  |  | 237,000 |  |  |  | 718,000 |  |  |  | 955,000 |
|  | $ | 3,594,000 |  |  | $ | 2,303,000 |  |  | $ | 5,897,000 |
These net operating loss carryforwards of approximately $5,897,000 may be offset against future taxable income for the years 2021 through 2040. No tax benefit from continuing or discontinued operations have been reported in the December 31, 2020 consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Due to change in ownership provisions of the Tax Reform Act of 1986, net operation loss carryforwards for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. The Company complies with the provisions of FASB ASC 740 in accounting for its uncertain tax positions. ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely that not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company has determined that the Company has no significant uncertain tax positions requiring recognition under ASC 740. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company had no accruals for interest and tax penalties at December 31, 2020 and 2019. The Company does not expect the amount of unrecognized tax benefits to materially change within the next 12 months. The Company is required to file income tax returns in the U.S. and Canadian federal jurisdictions, as well as the states of New York, New Jersey, and Utah and in the province of Ontario. The Company is no longer subject to income tax examinations by tax authorities for tax years ending before December 31, 2017.

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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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