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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:

 

 

 

For the

Year Ended December 31, 2022

 

 

For the

Year Ended December 31, 2021

 

Current:

 

 

 

 

 

 

 

 

Federal

 

$

-

 

 

$

-

 

State

 

 

23,655

 

 

 

17,723

 

 

 

 

23,655

 

 

 

17,723

 

Deferred:

 

 

 

 

 

 

 

 

Federal

 

 

-

 

 

 

-

 

State

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

-

 

Total Income tax expense

 

$

23,655

 

 

$

17,723

 

Significant Components of Deferred Income Tax Assets and Liabilities

 

Significant components of the Company’s deferred income tax assets and liabilities are as follows:

 

 

 

December 31, 2022

 

 

December 31, 2021

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Net operating loss carryforward

 

$

1,632,301

 

 

$

1,262,269

 

Accounts receivable

 

 

61,005

 

 

 

104,635

 

Compensation

 

 

560,735

 

 

 

555,936

 

Inventory

 

 

369,456

 

 

 

523,131

 

Other

 

 

26,465

 

 

 

1,244

 

Total deferred tax assets

 

 

2,649,962

 

 

 

2,447,215

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Intangibles

 

 

(190,817

)

 

 

(198,801

)

Property and equipment

 

 

(149

)

 

 

(1,522

)

Total deferred tax liabilities

 

 

(190,966

)

 

 

(200,323

)

Deferred tax assets, net

 

 

2,458,996

 

 

 

2,246,892

 

Valuation allowance:

 

 

 

 

 

 

 

 

Beginning of year

 

 

(2,246,892

)

 

 

(1,816,546

)

Increase during year

 

 

(212,104

)

 

 

(430,346

)

Ending balance

 

 

(2,458,996

)

 

 

(2,246,892

)

Net deferred tax asset

 

$

-

 

 

$

-

 

Reconciliation of Income Tax Computed at U.S. Statutory Rate to Effective Income Tax Rate

A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows:

 

 

 

For the

Year Ended December 31, 2022

 

 

For the

Year Ended December 31, 2021

 

Statutory U.S. federal income tax rate

 

 

21.0

%

 

 

21.0

%

Gain on Payroll Protection Program Loan

 

 

0.0

%

 

 

4.5

%

Permanent differences

 

 

-27.6

%

 

 

0.0

%

State income taxes, net of federal tax benefit

 

 

0.6

%

 

 

-0.8

%

Change in deferred tax asset valuation allowance

 

 

6.8

%

 

 

-25.8

%

Effective income tax rate

 

 

0.8

%

 

 

-1.1

%