INCOME TAX

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAX

NOTE 11 – INCOME TAX

For the years ending December 31, 2021, and 2020, there was no provision for income taxes and deferred tax assets have been entirely offset by valuation allowances.

The components of the provision for income taxes for the years ended December 31, 2021, and 2020 consisted of the following:

	2021		2020
Current:
Federal		—		—
State		—		—
Total Current
Deferred:
Federal		—		—
State		—		—
Total Deferred
Deferred tax assets:
Net loss carryforward	$	318,892	$	333,393
Depreciation	$	269,166	$	204,362
Directors' fees			$	124,000
Stock option expense	$	819,341	$	1,008,761
Total deferred tax assets	$	1,407,399	$	1,670,516
Deferred tax liabilities:
Amortization	$	153,499	$	63,291

The reconciliation of taxes at the federal statutory rate to our provision for income taxes for the years ended December 31, 2021 and 2020

		2021		2020
Tax at statutory federal rate	$	130,827	$	50,110
Loss carryforward at statutory tax federal rate	$	(130,827)	$	(50,110)
Provision for income tax		—		—

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The tax effect of significant components of the Company’s deferred tax assets and liabilities at December 31, 2021, and 2020, respectively, are as follows:

	December 31,
	2021			2020
Deferred tax assets:
Net operating loss carryforward	$	318,892		$	333,393
Total gross deferred tax assets		318,892			333,393
Less: Deferred tax asset valuation allowance		(318,892	)		(333,393	)
Total net deferred tax assets		—			—
Deferred tax liabilities:
Federal	$	—		$	—
State - California		—			—
Total net deferred taxes	$	—		$	—

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

The total NOL as of December 31, 2021, is $1,518,534, represented below based on year of expiration;

Expiration	NOL Amount
2037	$	570,143
2038	$	463,895
2039	$	484,496
	$	1,518,534