| SCHEDULE OF RECONCILIATION OF INCOME TAXES |
The
reconciliations between the Company’s effective tax rates and the statutory tax rate for the years ended December 31, 2021 and
2020 were as follows:
SCHEDULE OF RECONCILIATION OF INCOME TAXES
| |
|
2021 |
|
|
2020 |
|
| U.S federal taxes at the statutory rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
| State taxes net of federal benefit |
|
|
16.5 |
% |
|
|
46.0 |
% |
| Section 280E adjustment |
|
|
14.7 |
% |
|
|
43.6 |
% |
| Stock based compensation |
|
|
10.5 |
% |
|
|
30.0 |
% |
| Other |
|
|
0.9 |
% |
|
|
(1.0 |
)% |
| Valuation allowance |
|
|
0.0 |
% |
|
|
(93.6 |
)% |
| Total |
|
|
63.6 |
% |
|
|
46.0 |
% |
|
| SCHEDULE OF DEFERRED TAX ASSET |
The
approximate income tax effect of the Company’s loss carryforwards and temporary differences at December 31, 2021 and 2020 were
as follows:
SCHEDULE OF DEFERRED TAX ASSET
| |
|
2021 |
|
|
2020 |
|
| Deferred
tax assets: |
|
|
|
|
|
|
|
|
| Net operating
loss carryforwards |
|
$ |
6,981,492
|
|
|
|
2,235,987 |
|
| Allowance for doubtful
accounts |
|
|
11,810,425
|
|
|
|
11,400,555 |
|
| Stock compensation |
|
|
2,556,946
|
|
|
|
2,758,541 |
|
| Loss on equity investments |
|
|
8,632,902
|
|
|
|
8,629,490 |
|
| Goodwill writeoffs |
|
|
1,262,877
|
|
|
|
1,138,419 |
|
| Change in fair value of
investments |
|
|
598,957
|
|
|
|
282,291 |
|
| Lease payments |
|
|
170,543
|
|
|
|
151,936 |
|
| Reserves |
|
|
147,982 |
|
|
|
- |
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Depreciation |
|
|
(2,520,188 |
) |
|
|
(1,717,596 |
) |
| Real estate revenue |
|
|
(999,739
|
) |
|
|
(997,590 |
) |
| Net deferred tax asset |
|
|
28,642,197
|
|
|
|
23,882,033 |
|
| Valuation
allowance |
|
|
(28,642,197 |
) |
|
|
(23,882,033 |
) |
| Total |
|
$ |
- |
|
|
$ |
- |
|
|