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Taxes on Income | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
TAXES ON INCOME |
NOTE 14:- | TAXES ON INCOME
Income/(loss) before income taxes consisted of income from domestic operations of ($45.8) million for the calendar year ended December 31, 2021. Income tax expense (benefit) included in the statements of income and comprehensive income consisted of the following.
|  | December 31, |
|  | 2021 |  |  | 2020 |
Current |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |
Foreign |  |  | (277,717 | ) |  |  | - |
State |  |  | - |  |  |  | - |
Deferred |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
Foreign |  |  | - |  |  |  | - |
State |  |  | - |  |  |  | - |
Total |  | $ | (277,717 | ) |  | $ | - |
Income tax expense differed from the amount computed by applying the Federal statutory income tax rate of 21% to pretax income/(loss) for fiscal year 2021 as a result of the following:
|  | December 31, 2021 |
|  | Amount |  |  | Rate |
Federal tax at statutory rate |  |  |  |  |  |
State income taxes, net of federal tax benefit |  | $ | (9,627,366 | ) |  |  | 21.00 | %
Foreign Taxes |  |  | - |  |  |  | 0.00 | %
Stock Option Compensation |  |  | 74,132 |  |  |  | 0.00 | %
R&D Credit |  |  | - |  |  |  | 0.00 | %
Change in Valuation Allowance |  |  | 9,273,396 |  |  |  | 0.00 | %
Tax Return to Tax Provision Adjustment |  |  | - |  |  |  | (21.0 | %)
Non-Controlling Interest |  |  | - |  |  |  | 0.00 | %
Other |  |  | 2,121 |  |  |  | 0.00 | %
Total |  | $ | (277,717 | ) |  |  | 0.00 | %
The tax effects of temporary differences that gave rise to significant portions of the Company’s deferred tax assets and liabilities related to the following:
|  | December 31, |
|  | 2021 |  |  | 2020 |
Assets |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 6,244,902 |  |  |  | 3,261,270 |
Operating Lease Liability |  |  | 911,463 |  |  |  | - |
Accrued Liabilities |  |  | 88,833 |  |  |  | - |
Unrealized Loss |  |  | 714,428 |  |  |  | - |
Research and Development Credits |  |  | - |  |  |  | - |
Stock based compensation |  |  | 4,710,358 |  |  |  | - |
Disallowed Interest Expense |  |  | 425,302 |  |  |  | - |
Amortization |  |  | - |  |  |  | - |
Other |  |  | 32,853 |  |  |  | - |
Total deferred tax assets |  |  | 13,128,139 |  |  |  | 3,261,270 |
Liabilities |  |  |  |  |  |  |  |
Right of Use Asset |  |  | 934,086 |  |  |  | - |
Depreciation |  |  | (13,311 | ) |  |  | - |
Other |  |  | - |  |  |  | 249,361 |
Total deferred tax liabilities |  |  | 920,775 |  |  |  | 249,361 |
Valuation allowance |  |  | (12,207,364 | ) |  |  | (3,011,909 | )
Net deferred tax assets |  |  | - |  |  |  | - |
Management believes that, based on available evidence, both positive and negative, it is more likely than not that the deferred tax assets will not be utilized. The valuation allowance increased by $9.2 million for the year ended December 31, 2021 primarily as a result of current year activities. As of December 31, 2021, the Company had approximately $14.4 million and $10.7 million of federal and Australian net operating losses (NOL), that will have an indefinite life carryforward. The Internal Revenue Code (“IRC”) limits the amount of NOL carryforwards that a company may use in a given year in the event of certain cumulative changes in ownership over a three-year period as described in Section 382 of the IRC. Utilization of NOL carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. If recognized, all of the unrecognized tax benefits would not impact the effective tax rate due to the valuation allowance against certain deferred tax assets. As of December 31, 2021, the Company had no unrecognized income tax benefits. The Company does not anticipate any significant increases or decreases to unrecognized tax benefit during the next twelve months. The Company’s policy is to classify interest and penalties associated with unrecognized tax benefits as income tax expense. The Company had no interest or penalty accruals associated with uncertain tax benefits in its consolidated balance sheet and consolidated statement of operations for the tax year ended December 31, 2021. The Company files income tax returns in the U.S. Federal and foreign jurisdictions. As of yet, the company does not have much of a state footprint and does not have any state filings for the tax year ending December 31, 2021. The Company is not currently under examination by income tax authorities in federal or state jurisdictions. All tax returns will remain open for examination by the federal and most state taxing authorities for three years and four years, respectively, from the date of utilization of any net operating loss carryforwards or research and development credits. The Company has made no provision for U.S. income taxes on cumulative undistributed non-U.S. earnings that are indefinitely reinvested at December 31, 2021 . Determination of the potential amount of unrecognized deferred U.S. income tax liability related to such reinvested non-U.S. earnings is not practicable because of the numerous assumptions associated with this hypothetical calculation. However, foreign tax credits would be available to reduce some portion of this amount. Changes to the Company’s policy of reinvestment or repatriation of non-U.S. earnings may have a significant effect on its financial condition and results of operations.

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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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