Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income Tax (Expense) Benefit

The provision for income taxes for the years ended December 31, 2022 and 2021 consists of the following:

 

    Year Ended
December 31, 2022
    Year Ended
December 31, 2021
 
Current                           
Federal   $ (301,766 )   $ (14,860 )
State     (11,083 )     (164,670 )
Total Current     (312,849 )     (179,530 )
                 
Deferred                
Federal     -       -  
State     -       -  
Total Deferred     -       -  
                 
Provision for income taxes   $ (312,849 )   $ (179,530 )

Schedule of Effective Income Tax Rate Reconciliation

The following reconciles the Federal statutory income tax rate to the Company’s effective tax rate for the years ended December 31, 2022 and 2021:

 

    Year Ended
December 31, 2022
    Year Ended
December 31, 2021
 
    %     %  
Federal statutory rate     21.0       21.0  
Permanent and other items    

(17.0

)     0.6
Federal income taxes audit and other adjustments     -       63.5  
Change in valuation allowance     (14.5 )     (81.6 )
Effective income tax rate     (10.5 )     3.5  

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are comprised of the following at December 31, 2022 and 2021:

 

    December 31, 2022     December 31, 2021  
Deferred income tax assets:                       
Amortization   $

375,821

    $ 460,537  
Net operating loss carryforward    

15,445,916

      15,164,992  
Allowance for doubtful accounts    

387,818

      401,436  
Charitable contributions    

644

      644  
Stock options    

1,003,453

      1,003,453  
Accrued liabilities    

1,826,839

      1,711,890  
HHS Provider Relief Funds     67,685       -  
Employee retention credit    

292,282

      292,282  
HTS and AMSG basis difference     878,709       878,709  
Deferred state tax asset     4,089,682       3,683,024  
Total deferred income tax assets     24,368,849       23,596,967  
Deferred income tax liabilities:                
Depreciation     ( 583,812 )     (691,456 )
Deferred tax asset, net     23,785,037       22,905,511  
                 
Less: valuation allowance     (23,785,037 )     (22,905,511 )
                 
Net deferred tax assets   $ -     $ -