Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 15: Income Taxes

The Company recognizes deferred tax assets and liabilities using the asset and liability method. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. This method requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2021, the Company’s deferred tax assets relate to net operating loss (“NOL”) carry-forwards that were derived from operating losses and stock-based compensation from prior years. A full valuation allowance has been applied to the Company’s deferred tax assets. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized. At June 30, 2022, the Company had federal net operating loss carry-forwards, which are available to offset future taxable income, of $5,476,688. The Company’s NOL carry-forwards can be carried forward to offset future taxable income for a period of 20 years for each tax year’s loss. These NOL carry-forwards begin to expire in 2037. No provision was made for federal income taxes as the Company has significant NOLs in the United States and Canada. All of the Company’s income tax years remained open for examination by taxing authorities.

	Quarter ended June 30,			Year ended December 31,
	2022			2021
Net Loss		(485,851	)		(2,725,464	)
Add back:
Stock Compensation		43,991			62,249
Amortization of Debt Discount		-			467,118
Taxable Income		(441,860	)		(2,196,097	)
Tax Rate		21	%		21	%
Deferred Tax Asset:
Net Operating (Gain) Loss		92,791			461,180
Valuation Allowance		(92,791	)		(461,180	)
Net Deferred Asset		-			-