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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Taxes [Abstract] |
Components of Loss Before Income Taxes | The components of loss before income taxes for the years ended December 31, 2021 and 2020 were as follows:
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |
Domestic |  | $ | (12,852,902 | ) |  | $ | (2,808,067 | )
Foreign |  |  | (8,592,950 | ) |  |  | (312,975 | )
|  | $ | (21,445,852 | ) |  |  | (3,121,042 | )
Components of Income Tax Provision (Benefit) | The components of income tax provision (benefit) for the years ended December 31, 2021 and 2020 were as follows:
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |
Federal: |  |  |  |  |  |
Current |  | $ | - |  |  | $ | - |
Deferred |  |  | - |  |  |  | - |
Total federal income tax (benefit) provision |  |  | - |  |  |  | - |
State: |  |  |  |  |  |  |  |
Current |  |  | - |  |  |  | - |
Deferred |  |  | - |  |  |  | - |
Total state income tax (benefit) provision |  |  | - |  |  |  | - |
International (Non-US): |  |  |  |  |  |  |  |
Current |  |  | (71,731 | ) |  |  | - |
Deferred |  |  | (850,779 | ) |  |  | - |
Total international income tax (benefit) provision |  |  | (922,510 | ) |  |  | - |
Total income tax (benefit) provision |  | $ | (922,510 | ) |  | $ | - |
Income Tax (Benefit) Provision | Income tax (benefit) provision differs from the amount that would be provided by applying the statutory U.S. corporate income tax rate of 21% for the years ended December 31, 2021 and 2020 due to the following items:
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |
Current tax at U.S. statutory rate |  | $ | (4,503,629 | ) |  | $ | (655,419 | )
Effect of state tax |  |  | (2,322,410 | ) |  |  | (78,345 | )
Effect of valuation allowance |  |  | 9,309,430 |  |  |  | 213,463 |
Warranty Liability |  |  | (4,776,042 | ) |  |  | - |
Effect of non-US income tax rates |  |  | 939,695 |  |  |  | 2,391 |
Net Operating Loss True-Up |  |  | - |  |  |  | 154,533 |
Effect of non-deductible expenses |  |  | - |  |  |  | 184,425 |
Transaction expenses |  |  | 428,384 |  |  |  | - |
Stock compensation |  |  | 282,076 |  |  |  | 182,591 |
Other, net |  |  | (280,014 | ) |  |  | (3,639 | )
Total income tax (benefit) provision |  | $ | (922,510 | ) |  | $ | - |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Company’s assets and liabilities at the applicable tax rates in effect. The principal components of Company’s deferred tax assets (liabilities) as of December 31, 2021, and 2020 include the following:
|  | December 31, 2021 |  |  | December 31, 2020 |
Deferred Tax Assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 12,673,332 |  |  | $ | 1,000,520 |
Fixed assets |  |  | - |  |  |  | 32,627 |
Debt costs |  |  | - |  |  |  | 20,490 |
Reserves and accruals |  |  | 932,354 |  |  |  | 203,013 |
Accounts receivable |  |  | - |  |  |  | 36,838 |
Capitalized costs |  |  | - |  |  |  | 198,909 |
Stock compensation |  |  | 1,770,835 |  |  |  | 69,341 |
Other |  |  | 22,915 |  |  |  | 49,655 |
Total deferred tax assets before valuation allowance |  | $ | 15,399,436 |  |  | $ | 1,611,393 |
Less: Valuation Allowance |  |  | (11,773,412 | ) |  |  | (1,597,693 | )
Total deferred tax assets, net of valuation allowance |  | $ | 3,626,024 |  |  | $ | 13,700 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Fixed assets |  |  | (12,039 | ) |  |  | (13,700 | )
Other |  |  | (35,132 | ) |  |  | - |
Intangibles |  |  | (4,833,234 | ) |  |  | - |
Total deferred tax liabilities |  | $ | (4,880,405 | ) |  | $ | (13,700 | )
Net deferred tax assets/(liabilities) |  | $ | (1,254,381 | ) |  | $ | - |
Reconciliation of Unrecognized Tax Benefits | As of December 31, 2021 and 2020, the Company had $134,595 of gross unrecognized tax benefits, which would impact the effective tax rate, if recognized. A reconciliation of unrecognized tax benefits is as follows:
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |
Balance at beginning of year |  | $ | 134,595 |  |  | $ | 134,595 |
Increase in tax positions for current year |  |  | - |  |  |  | - |
Decrease in tax positions for prior year |  |  | - |  |  |  | - |
Lapse in statute of limitations |  |  | - |  |  |  | - |
Balance at end of year |  | $ | 134,595 |  |  | $ | 134,595 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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