Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Schedule of components of income tax expense (benefit)

	DECEMBER 31,
	2021			2020
Current provision
State	$	100,000		$	68,541
Foreign		50,165			6,577
Total		150,165			75,118
Deferred provision (benefit)
Federal		567,316			(6,651,247	)
State		(83,032	)		(823,822	)
Foreign		5,998			-
Total		490,282			(7,475,069	)
Income tax provision (benefit)	$	640,447		$	(7,399,951	)

Schedule of effective income tax rate reconciliation

	DECEMBER 31,
	2021			2020
Statutory federal income tax rate		21.0	%		21.0	%
State, net of federal benefit		7.5	%		7.0	%
Non-deductible expenses		19.7	%		0.8	%
Change in valuation allowance		15.1	%		281.2	%
Foreign rate differential		3.8	%		0.0	%
Return to accrual difference true-ups		15.1	%		1.4	%
Other		(0.1	)%		1.1	%
Deferred tax adjustment and true-up		88.2	%		3.4	%
Combined effective tax rate		62.9	%		253.1	%

Schedule of deferred tax assets and liabilities

	DECEMBER 31,
	2021			2020
Deferred tax assets:
Net operating loss carryforwards	$	9,501,008		$	9,711,726
Alternative minimum tax credit		45,650			45,650
Share-based compensation		659,338			627,980
Intangible amortization		208,036			473,882
Lease liability		1,554,888			1,522,560
Other assets		251,553			107,682
Total deferred tax assets		12,220,473			12,489,480
Less: valuation allowance		(1,999,630	)		(2,152,768	)
Total deferred tax assets, net		10,220,843			10,336,712
Deferred tax liabilities:
Goodwill amortization		3,041,451			2,786,029
Depreciation		210,755			177,170
Foreign intangible amortization		409,269			336,759
Other liabilities		12,830			12,819
Lease asset		1,419,056			1,417,856
Total deferred tax liabilities		5,093,361			4,730,633
Net deferred tax asset	$	5,127,482		$	5,606,079

Summary of valuation allowance

	DECEMBER 31,
	2021			2020
Beginning balance	$	(2,152,768	)	$	(10,364,787	)
Decreases (increases)		153,138			8,212,019
Ending balance	$	(1,999,630	)	$	(2,152,768	)