Annual report pursuant to Section 13 and 15(d)

Disclosure of Prior Period Financial Statement Error (Tables)

v3.23.1
Disclosure of Prior Period Financial Statement Error (Tables)
12 Months Ended
Dec. 31, 2022
Schedule of expected tax expense (benefit)

 

 

For the

Year Ended

December 31,

2022

 

 

For the

Year Ended

December 31,

2021, (as adjusted)

 

U.S. federal statutory rate

 

 

21.0 %

 

 

21.0 %

State taxes

 

 

(2.6 )%

 

 

(2.5 )%

Deferred tax asset adjustments

 

 

0.1 %

 

 

8.4 %

Non-deductible amortization of debt discount

 

 

 (20.9

)% 

 

 

(13.8

)% 

Non-taxable change in profit share liability

 

 

 (10.8

)% 

 

 

(3.1

)%

Change in valuation allowance

 

 

12.0 %

 

 

(10.6 )%

Income tax provision

 

 

(1.2 )%

 

 

(0.6 )%
Schedule of deferred tax assets and liabilities

 

 

2022

 

 

2021 (as adjusted)

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$ 6,495,000

 

 

$ 6,689,000

 

Stock based compensation

 

 

2,008,000

 

 

 

1,872,000

 

Other

 

 

23,000

 

 

 

1,430,000

 

Total deferred tax assets

 

 

8,526,000

 

 

 

8,691,000

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Property and equipment

 

 

(1,000 )

 

 

-

Intangible assets

 

 

(98,000 )

 

 

(76,000 )

Total deferred tax liabilities

 

 

(99,000 )

 

 

(76,000 )

 

 

 

 

 

 

 

 

 

Valuation Allowance

 

 

(8,427,000 )

 

 

(8,615,000 )

 

 

 

 

 

 

 

 

 

Net deferred tax asset

 

$ -

 

 

$ -

 

Adjustment  
Schedule of expected tax expense (benefit)

 

 

 

 

 

 

For the

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

December 31,

 

 

 

2021

 

 

Adjustment

 

 

2021, Adjusted

 

U.S. federal statutory rate

 

 

21.0 %

 

 

0.0 %

 

 

21.0 %

State taxes

 

 

4.3 %

 

 

(6.8 )%

 

 

(2.5 )%

Deferred tax asset adjustments

 

 

33.5 %

 

 

(25.1 )%

 

 

8.4 %

Non-deductible amortization of debt discount

 

 

0.0 %

 

 

(13.8 )%

 

 

(13.8 )%

Non-taxable change in profit share liability

 

 

0.0 %

 

 

(3.1 )%

 

 

(3.1 )%

Change in valuation allowance

 

 

(63.6 )%

 

 

53.0 %

 

 

(10.6 )%

Income tax provision

 

 

(4.8 )%

 

 

4.2 %

 

 

(0.6 )%
Schedule of deferred tax assets and liabilities

 

 

 

 

 

 

2021

 

 

 

2021

 

 

Adjustment

 

 

Adjusted

 

Deferred tax assets:

 

 

 

 

 

 

 

 

 

Net operating loss carryforwards

 

$ 9,312,000

 

 

$ (2,623,000 )

 

$ 6,689,000

 

Stock based compensation

 

 

1,762,000

 

 

 

110,000

 

 

 

1,872,000

 

Other

 

 

143,000

 

 

 

(13,000 )

 

 

130,000

 

Total deferred tax assets

 

 

11,217,000

 

 

 

(2,526,000 )

 

 

8,691,000

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

(41,000 )

 

 

41,000

 

 

 

-

 

Intangible assets

 

 

(76,000 )

 

 

-

 

 

 

(76,000 )

Total deferred tax liabilities

 

 

(117,000 )

 

 

41,000

 

 

 

(76,000 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation allowance

 

 

(11,100,000 )

 

 

2,485,000

 

 

 

(8,615,000 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Net deferred tax asset

 

$ -

 

 

 

-

 

 

 

-