Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Taxes  
Schedule of components of provision for income taxes

 

 

 

 

 

 

 

 

 

December 31, 

 

 

2020

 

2019

Current (provision) benefit:

    

 

  

    

 

  

Federal

 

$

 —

 

$

 —

State

 

 

37,514

 

 

8,000

Total Current

 

 

37,514

 

 

8,000

Deferred provision benefit:

 

 

  

 

 

  

Federal

 

 

(37,580)

 

 

 —

State

 

 

(8,405)

 

 

 —

Total deferred

 

 

(45,985)

 

 

 —

Income tax benefit

 

$

8,471

 

$

8,000

 

Schedule of reconciliation of the statutory U.S. federal rate to the Company's effective tax rate

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

    

2020

 

2019

 

Provision for federal income taxes at statutory rates

    

283,974

    

(21)

%  

861,062

    

(21)

%

Provision for state income taxes, net of federal benefit

 

(186)

 

 —

%  

79,435

 

(2)

%

Change in valuation allowance

 

(271,799)

 

20

%  

(926,681)

 

23

%

Nondeductible expenses

 

(4,199)

 

 —

%  

(7,437)

 

 —

%

Return to provision adjustments

 

740

 

 —

%  

2,172

 

 —

%

Other

 

(59)

 

 —

%  

(551)

 

 —

%

Income tax benefit

 

8,471

 

 1

%  

8,000

 

 —

%

Effective Tax Rate

 

 

 

0.63

%  

0.20

%  

  

 

 

Schedule of tax effects of the temporary differences and carryforwards that give rise to the deferred tax assets

 

 

 

 

 

 

 

 

 

December 31, 

 

 

2020

 

2019

Deferred tax assets

    

 

  

    

 

  

Net Operating Loss Carryforward

 

$

2,103,091

 

$

1,469,052

Property and equipment

 

 

6,207

 

 

430

Intangibles

 

 

(38,952)

 

 

 —

Reserves

 

 

14,859

 

 

 —

Interest Expense Carryforward

 

 

52,965

 

 

33,741

Lease liability

 

 

100,705

 

 

60,843

Charitable Contributions Carryover

 

 

5,197

 

 

5,189

Total deferred tax assets

 

 

2,244,072

 

 

1,569,255

Deferred tax liabilities

 

 

  

 

 

  

Internally Developed Software

 

 

(172,780)

 

 

(105,869)

Stock Compensation

 

 

(125,670)

 

 

(19,093)

Right-of-Use Assets

 

 

(99,768)

 

 

(60,386)

Prepaid Expenses

 

 

(197,599)

 

 

(7,453)

Total deferred tax liabilities

 

 

(595,817)

 

 

(192,801)

Valuation Allowance

 

 

(1,648,255)

 

 

(1,376,454)

Deferred tax asset, net

 

$

 —

 

$

 —