INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

SUMMARY OF COMPONENTS OF EARNINGS BEFORE INCOME TAXES

The components of earnings before income taxes for the years ended December 31, 2022 and 2021 were as follows:

	Year Ended
	December 31,
	2022			2021
Net loss after loss in equity method investment and before income taxes:
Domestic	$	(9,449,000	)	$	(8,188,000	)
Foreign		362,000			80,000
	$	(9,087,000	)	$	(8,108,000	)

SUMMARY OF COMPONENTS OF INCOME TAX PROVISION (BENEFIT)

Income tax provision (benefit) consists of the following for the years ended December 31, 2022 and 2021:

	Year Ended
	December 31,
	2022		2021
Income tax provision (benefit):
Current
Federal	$	-	$	-
State		-		-
Foreign		87,000		15,000
Total current		87,000		15,000
Deferred:
Federal		-		-
State		-		-
Foreign		-		-
Total deferred		-		-
Total income tax provision (benefit)	$	87,000	$	15,000

SUMMARY OF EFFECTIVE TAX RATE AND STATUTORY FEDERAL RATE

A reconciliation of the income tax provision (benefit) by applying the statutory United States federal income tax rate to income (loss) before income taxes is as follows:

	Year Ended December 31,
	2022			2021
	$			$
Federal income tax provision (benefit) at statutory rate	$	(1,984,000	)	$	1,736,000
State tax expense net of federal tax benefit		(411,000	)		211,000
State tax expense federal impact		45,000			29,000
Non-deductible expenses		-			(320,000	)
State rate change adjustment		(214,000	)		(138,000	)
Foreign taxes at rate different than US Taxes		87,000			(2,000	)
Other true-ups		106,000			188,000
Change in valuation allowance		2,458,000			(1,689,000	)
Income tax provision (benefit)	$	87,000		$	15,000

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset is as follows:

	December 31, 2022			December 31, 2021
Deferred tax assets:
Net operating loss carryforward	$	3,658,000		$	2,455,000
Property plant and equipment and intangibles asset		130,000			132,000
Equity method investment loss		441,000			-
Stock-based compensation		1,949,000			1,133,000
Total deferred tax assets	$	6,178,000		$	3,720,000
Deferred tax liabilities:
Book basis of property and equipment in excess of tax basis	$			$	-
Total deferred tax liabilities	$			$	-
Net deferred tax asset before valuation allowance	$	6,178,000		$	3,720,000
Less: valuation allowance		(6,178,000	)		(3,720,000	)
Net deferred tax asset	$			$	-