Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Tax, Domestic and Foreign

United States and foreign components of loss before income taxes were as follows:

 

    2021     2020  
   

For the Years

Ended December 31,

 
    2021     2020  
United States   $ (711,404,939 )   $ (6,287,903 )
Foreign     (9,618,416 )     -  
Loss before income taxes   $ (721,023,355 )   $ (6,287,903 )
Schedule of Components of Income Tax Expense (Benefit)

The income tax provision (benefit) consists of the following:

 

    2021     2020  
   

For the Years

Ended December 31,

 
    2021     2020  
Current:                
Federal   $ -     $ -  
Foreign     -       -  
State and local     81,081       19,197  
Total current   $ 81,081     $ 19,197  
                 
Deferred:                
Federal   $ (8,782,083 )   $ (1,166,562 )
Foreign     -     -  
State     (4,037,793 )     (196,494 )
Total deferred     (12,819,876 )     1,363,056  
Less: valuation allowance increase     12,928,296       1,363,056  
Net deferred   $ 108,420   $ -  
Income tax provision (benefit)   $ 189,501     $ 19,197  
Schedule of Gross Carryforwards

The tax effects of temporary differences that give rise to deferred tax assets or liabilities are presented below:

 

 

             
    For the Years ended December 31,  
    2021     2020  
Deferred tax assets:                
Stock-based compensation   $ 3,547,401     $ 1,025,745  
Goodwill and intangible assets    

-

      -  
Operating lease liabilities     16,504       32,653  
Net operating loss carryforwards     14,667,049       3,567,490  
Other     759,883      

-

 
Less: valuation allowance     (18,548,212 )     (3,787,253 )
Net deferred tax assets     442,626       838,635  
                 
Deferred tax liabilities:                
Right of use assets     (15,848 )     (32,137 )
Goodwill and intangible assets     (375,889 )     (724,395 )
Property and equipment     (159,308 )     (82,103 )
Net deferred tax liabilities     (551,046 )     (838,635 )
Net deferred taxes   $ (108,420 )   $ -  

 

As of December 31, 2021, the Company has the following gross carryforwards available:

 

 

Jurisdiction   Tax Attribute   Amount     Begin to Expire
U.S. Federal (1)   NOL     42,257,987     No expiration
U.S. State (1)   NOL     41,162,702     2038
Singapore (1)   NOL     16,860,023     No expiration
U.S. Federal   Foreign Tax Credits     316,140     2028

 

(1) Net operating losses (NOL’s) are presented as pre-tax amounts.
Schedule of Gross Carryforwards

As of December 31, 2021, the Company has the following gross carryforwards available:

 

 

Jurisdiction   Tax Attribute   Amount     Begin to Expire
U.S. Federal (1)   NOL     42,257,987     No expiration
U.S. State (1)   NOL     41,162,702     2038
Singapore (1)   NOL     16,860,023     No expiration
U.S. Federal   Foreign Tax Credits     316,140     2028

 

(1) Net operating losses (NOL’s) are presented as pre-tax amounts.
Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:

 

 

             
    For the Years ended December 31,  
    2021     2020  
Tax at federal statutory rate     21.0 %     21.0 %
Warrant fair market adjustment     -16.4 %     0.0 %
U.S. income subject to valuation allowance     -2.0 %     -20.9 %
State and local income taxes     0.4 %     -0.3 %
International rate differences     0.0 %     0.0 %
Income from “pass through” entities taxable to noncontrolling partners     -0.2 %     0.0 %
Nondeductible interest expense     -2.1 %     0.0 %
Transaction costs     -0.2 %     0.0 %
Executive compensation     -0.6 %     0.0 %
Other     0.0 %     -0.1 %
Effective income tax rate     -0.03 %     -0.3 %