• Filing Date: 2021-03-31
  • Form Type: 10-K
  • Description: Annual report
v3.21.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provision

The provision (benefit) for income taxes consists of the following:

 

    2020     2019  
Currently payable:                
Federal   $ -     $ -  
State     5,000       -  
Total currently payable     5,000       -  
Deferred:                
Federal     582,000       (367,000 )
State     (22,000     (125,000 )
Foreign     (125,000 )     (117,000 )
Total deferred     435,000       (609,000 )
Less: (decrease) increase in allowance     (2,214,000 )     484,000  
Net deferred     (1,779,000 )     (125,000 )
Total income tax benefit   $ (1,774,000 )   $ (125,000 )

Schedule of Deferred Tax Assets and Liabilities

Individual components of deferred tax assets and liabilities are as follows:

 

    2020     2019  
Deferred tax assets:            
Net operating loss carry forwards   $ 13,852,000     $ 11,189,000  
Equity issued for services     192,000       169,000  
Goodwill and other intangibles     0       676,000  
Investment in pass-through entity     12,000       12,000  
Deferred revenue     183,000       182,000  
Operating Lease Liability     47,000       284,000  
Other     605,000       376,000  
Gross deferred tax assets     14,891,000       12,888,000  
                 
Deferred tax liabilities:                
Goodwill and other intangibles     4,668,000       29,000  
Unrealized gains     2,599,000       -  
Right -of-use asset     47,000       284,000  
Gross deferred tax liabilities     7,314,000       313,000  
                 
Less: valuation allowance     (11,076,000 )     (12,619,000 )
                 
Net deferred tax liabilities   $ (3,499,000 )   $ (44,000 )

Schedule of Changes in Deferred Tax Liabilities

The decrease in the current year valuation allowance and subsequent increase in the deferred tax liability is driven by several factors and is represented in the below table:

 

Balance at December 31, 2019   $ 44,000  
Add: Acquisition of Impact BioMedical     5,234,000  
  Current year activity     435,000  
           
Less:          
  Release of valuation allowance     2,214,000  
           
Balance at December 31, 2020   $ 3,499,000  

Schedule of Effective Income Tax Rate Reconciliation

The differences between the United States statutory federal income tax rate and the effective income tax rate in the accompanying consolidated statements of operations are as follows:

 

    2020     2019  
Statutory United States federal rate     21.0 %     21.00 %
State income taxes net of federal benefit     (9.3 )%     3.3 %
Permanent differences     2.0 %     (1.6 )%
Other     (8.3 )%     (1.3 )%
Non-controlling interest     (70.5 )%     - %
Foreign taxes     7.3 %     (1.1 )%
PPP loan forgiveness     (142.2 )%     - %
Stock based compensation     22.4 %     -%  
Executive compensation     485.2 %        
Change in valuation allowance     (1547.5 )%     (16.3 )%
                 
Effective rate     (1,239.9 )%     4.00 %