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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | 15. INCOME TAXES Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets are reduced, if deemed necessary, by a valuation allowance for the amount of tax benefits which are not expected to be realized. The following is a summary of the components giving rise to the income tax provision (benefit) for the years ended December 31: The provision (benefit) for income taxes consists of the following: Schedule of Income Tax Provision
|  | 2023 |  |  | 2022 |
Currently payable: |  |  |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | 15,000 |
State |  |  | 4,000 |  |  |  | - |
Foreign |  |  | - |  |  |  | 119,000 |
Total currently payable |  |  | 4,000 |  |  |  | 134,000 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (5,392,000 | ) |  |  | (14,839,000 | )
State |  |  | (79,000 | ) |  |  | (492,000 | )
Foreign |  |  | (48,000 | ) |  |  | (58,000 | )
Total deferred |  |  | (5,519,000 | ) |  |  | (15,390,000 | )
Less: increase in allowance |  |  | 5,519,000 |  |  |  | 15,427,000 |
Net deferred |  |  | - |  |  |  | 38,000 |
Total income tax loss (benefit) |  | $ | 4,000 |  |  | $ | 172,000 |
Individual components of deferred tax assets and liabilities are as follows: Schedule of Deferred Tax Assets and Liabilities
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carry forwards |  | $ | 21,496,000 |  |  | $ | 24,975,000 |
Net operating loss IRC 382 limited |  |  | 9,634,000 |  |  |  | 9,634,000 |
Unrealized loss on securities |  |  | 4,655,000 |  |  |  | 5,753,000 |
Equity issued for services |  |  | 190,000 |  |  |  | 190,000 |
Goodwill and other intangibles |  |  | 63,000 |  |  |  | 34,000 |
Investment in pass-through entity |  |  | 11,000 |  |  |  | 11,000 |
Deferred revenue |  |  | 176,000 |  |  |  | 176,000 |
Operating Lease Liability |  |  | 1,713,000 |  |  |  | 1,935,000 |
Depreciation and amortization |  |  | 1,000 |  |  |  | 24,000 |
Other |  |  | 2,507,000 |  |  |  | 696,000 |
Gross deferred tax assets |  |  | 40,446,000 |  |  |  | 33,794,000 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Goodwill and other intangibles |  |  | 3,369,000 |  |  |  | 2,822,000 |
Depreciation and amortization |  |  | 614,000 |  |  |  | (194,000 | )
Right -of-use asset |  |  | 1,625,000 |  |  |  | 1,846,000 |
Gross deferred tax liabilities |  |  | 5,608,000 |  |  |  | 4,474,000 |
Less: valuation allowance |  |  | (34,838,000 | ) |  |  | (29,357,000 | )
Net deferred tax liabilities |  | $ | - |  |  | $ | (38,000 | )
At December 31, 2023 and 2022, the Company has approximately $138.9 million and $108.4 million in federal net operating loss carryforwards (“NOLs”), respectively, available to reduce future taxable income. Under the provisions of the Internal Revenue Code, the net operating losses are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. Certain tax attributes are subject to an annual limitation as a result of certain cumulative changes in ownership interest of significant shareholders which could constitute a change of ownership as defined under Internal Revenue Code Section 382. For the year ended December 31, 2021, the Company has completed a full analysis of historical ownership changes and determined that a portion of the net operating losses have a limitation on future deductibility. Approximately $43.8 million of net operating losses incurred prior to 2020 will be unable to offset future taxable income and have been reserved via a valuation allowance to reduce the deferred tax asset to the expected realizable amount, leaving $2.9 million available for use which expire at various dates through 2038 and the residual which never expire. This analysis is currently being performed for tax year ending December 31, 2023. Additionally, at December 31, 2023 and 2022, the Company had approximately $20.7 million and $43.6 of California and Illinois NOL carry-forwards, respectively, which expire through 2043. The NOL carry-forwards may be limited in certain circumstances, including ownership change and have been fully reserved via a valuation allowance. The valuation allowance for deferred tax assets increased approximately $5.5 million and $15.4 million for the years ended December 31, 2023 and December 31, 2022, respectively. The valuation allowance for deferred tax liability increased approximately $1.1 million in the year ended December 31,2023 and decreased approximately $9.9 million for the year ended December 31, 2022. The differences between the United States statutory federal income tax rate and the effective income tax rate in the accompanying consolidated statements of operations are as follows: Schedule of Effective Income Tax Rate Reconciliation
|  | 2023 |  |  | 2022 |
Statutory United States federal rate |  | 21.0 | % |  |  | 21.0 | %
State income taxes net of federal benefit |  | 0.38 | % |  |  | 0.51 | %
Permanent differences |  | (6.68 | )% |  |  | 0.03 | %
Other |  | (9.04 | )% |  |  | 0.93 | %
Foreign taxes |  | - | % |  |  | (0.07 | )%
Change in valuation allowance |  | (5.66 | )% |  |  | (22.66 | )%
Effective rate |  | - | % |  |  | (0.25 | )%
The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2023 and 2022 the Company recognized no interest and penalties. The Company files income tax returns in the U.S. federal jurisdiction and various states. The tax years 2020-2023 generally remain open to examination by major taxing jurisdictions to which the Company is subject.

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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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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