Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

v3.21.2
INCOME TAXES
6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

NOTE 11 INCOME TAXES

 

FASB ASC 740-10, “Accounting for Uncertainty in Income Taxes” (“ASC 740-10”) prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions.  The Company does not have any unrecognized tax benefits.

 

The recognized deferred tax asset is based upon the expected utilization of its benefit from future taxable income. The Company has federal net operating loss (“NOL”) carryforwards of approximately $5,100,000 as of June 30, 2021, which is subject to limitations under Section 382 of the Internal Revenue Code. These carryforward losses are available to offset future taxable income and a portion begin to expire in the year 2024 to 2033.

 

The tax effect of temporary differences, primarily net operating loss carryforwards, asset reserves and depreciation, gave rise to the Company’s deferred tax asset.  Deferred income taxes are recognized for the tax consequence of such temporary differences at the enacted tax rate expected to be in effect when the differences reverse. The Company had approximately $828,000 and $1.04 million in deferred tax assets at June 30, 2021 and December 31, 2020, respectively.

 

For the six months ended June 30, 2021, the Company’s Federal and State provision requirements were calculated based on the estimated tax rate. For the six months ended June 30, 2021, the Company recorded a tax provision of $195,017 as compared to a tax benefit from the net loss before taxes for the six months ended June 30, 2020 in the amount of $78,382.