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Income Taxes (Tables)

12 Months Ended

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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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.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of the change in unrecognized tax benefits, excluding amounts pertaining to examined tax returns.

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