Annual report pursuant to Section 13 and 15(d)

INCOME TAX (Tables)

v3.22.1
INCOME TAX (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense
Income tax expense for the years ended December 31, 2021 and 2020 is summarized as follows.
 
 
 
December 31, 2021
 
 
December 31, 2020
 
Deferred:                
Federal
  $ (8,581,566 )   $ (3,257,647 )
State
    (2,853,820 )     (1,083,338 )
Change in valuation allowance     11,435,386       4,340,985  
Income tax expense (benefit)   $ -     $ -  
Schedule of Reconciliation of the Provision for Income Taxes at the U.S. Federal Income Tax Rate
The following is a reconciliation of the provision for income taxes at the U.S. federal income tax rate to the income taxes reflected in the Statement of Operations:
 
 
 
December 31, 2021
 
 
December 31, 2020
 
Book income (loss)     21.00 %     21.00 %
State taxes     6.98 %     6.98 %
Change in the fair value of warrant derivative     2.02 %     - %
Other permanent items     1.47 %     (0.04 )%
Valuation allowance     (31.51 )%     (27.94 )%
Tax expense at actual rate     -       -  
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows:
 
 
 
December 31, 2021
 
 
December 31, 2020
 
Deferred tax assets:                
Net operating loss carryforward   $ 25,466,331     $ 13,240,919  
Depreciation     (827,012 )     -  
Deferred rent     (8,267 )     23,439  
Stock-based compensation     457,224       388,512  
Total gross deferred tax assets     25,088,276       13,652,870  
Less: valuation allowance     (25,088,276 )     (13,652,870 )
Net deferred tax assets   $ -     $ -