Annual report pursuant to Section 13 and 15(d)

L. INCOME TAXES (Tables)

v3.21.1
L. INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of reconcilation of tax expense

A reconciliation of tax expense computed at the statutory federal tax rate on loss from operations before income taxes to the actual income tax (benefit) / expense is as follows:

 

    2020     2019  
Tax benefit computed at the statutory rate   $ (656,723 )   $ (427,244 )
State taxes     9,489       6,525  
Book expenses not deductible for tax purposes     540       2,980  
Rate Change     (30,914 )     45,656  
Other     10,218       2,517  
      (667,390 )     (369,566 )
Change in valuation allowance for deferred tax assets     689,992       269,203  
Income tax (benefit) expense   $ 22,602     $ (100,363 )
Schedule of deferred tax assets and liabilties

Deferred income taxes include the net tax effects of net operating loss (NOL) carry forwards and the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets are as follows:

 

    2020     2019  
Deferred Tax Assets:                
Net operating loss carry forwards   $ 21,641,665     $ 20,772,428  
Intangibles     117,533       207,618  
Credits     –       28,022  
Other     558,964       506,349  
Total deferred tax assets     22,318,162       21,514,417  
                 
Deferred Tax Liabilities:                
Intangibles     –       –  
Total deferred tax liabilities     –       –  
Valuation allowance     (22,318,162 )     (21,486,396 )
Net deferred tax asset   $ –     $ 28,021