Income tax

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income tax

Note 22 – Income tax

The provision (benefit) for income taxes for the years ended December 31, 2022 and 2021 consist of the following:

	2022		2021
Current:
Federal	$	-	$	-
State		14,383		9,780
		14,383		9,780
Deferred:
Federal		107,700		(500,400	)
State		18,300		(150,000	)
Change in valuation		126,000		650,400
Total provision (benefit)	$	14,383	$	9,780

The Company has net deferred tax assets resulting from a timing difference in recognition of depreciation and reserves for uncollectible accounts receivable and from net operating loss carryforwards.

At December 31, 2022, the Company had approximately $8,100,000 of federal net operating loss carryforwards of which approximately $4,600,000 can be carried forward indefinitely and the remaining balance will expire in between 2024 and 2025. The Company has a California net operating loss carryforward of approximately $6,500,000 that begins expiring in 2024. Mentor relocated to Texas in September 2020 and the Company’s ability to utilize the California net operating loss carryforwards is dependent on future generation of California taxable income.

The income tax provision (benefit) differs from the amount computed by applying the U.S. federal statutory corporate income tax rate of 21% and 21% in 2022 and 2021 to net income (loss) before income taxes for the years ended December 31, 2022 and 2021 as a result of the following:

	2022			2021
Net income (loss) before taxes	$	(352,542	)	$	(246,686	)
US federal income tax rate		21	%		21	%
Computed expected tax provision (benefit)		(74,034	)		(51,804	)
Permanent differences and other		200,034			702,204
Change in valuation		(126,000	)		(650,400	)
Federal income tax provision	$	-		$	-

The significant components of deferred income tax assets as of December 31, 2022 and 2021 after applying enacted corporate income tax rates are as follows:

	2022			2021
Net Operating Losses carried forward	$	1,908,200		$	2,409,400
Capital Losses carried forward		371,700			577,000
Deferred officer bonus and other		62,000			2,300
Valuation allowance		(2,341,900	)		(2,988,700	)
	$	-		$	-

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. All tax years from 2018 to 2021 are subject to examination