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 |
|
$ |
- |
|
|
|
- |
|
|
|
- |
|
|