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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
    The Company recognizes deferred tax assets and liabilities using the asset and liability method. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. This method requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.
As of December 31, 2021, the Company’s deferred tax assets primarily relate to net operating loss (“NOL”) carryforwards that were derived from operating losses and stock based compensation from prior years. A full valuation allowance has been applied to the Company’s deferred tax assets. The valuation allowance will be reduced when and if the Company determines it is more likely than not that the related deferred income tax assets will be realized.
At December 31, 2021, the Company had federal net operating loss carry forwards, which are available to offset future taxable income, of $7,273,220. The Company’s NOL carryforwards generated prior to January 1, 2018 of $3,192,777 can be carried forward to offset future taxable income for a period of 20 years for each tax year’s loss. These NOL carryforwards begin to expire in 2035. No provision was made for federal income taxes as the Company has NOLs. The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate to the net loss before provision for income taxes for the following reasons:
 December 31, 2021December 31, 2020
Net loss before taxes at statutory rate$860,542 $(352,562)
Permanent items(575,449)479,115 
Temporary items(420,274)312,649 
Income tax expense at statutory rate(135,181)439,202 
Valuation allowance159,451 (864,881)
Income tax expense (benefit) per books$24,270 $(425,679)
 
Net deferred tax assets consist of the following components as of: 
 December 31, 2021December 31, 2020
Net operating loss carryover at statutory rate$4,497,897 $3,881,105 
Stock-based compensation expense3,544,938 2,923,099 
Fixed asset depreciation(18,378)(38,863)
Intangibles amortization(1,134)(1,081)
Other3,391 307,044 
Total$8,026,714 $7,071,304 
Valuation allowance$(8,026,714)$(7,071,304)
Net deferred tax asset$— $— 
 
The Company had no uncertain tax positions at December 31, 2021 and December 31, 2020.
    The Company is subject to income taxation by the United States government and certain states in which the Company's activities give rise to an income tax filing requirement. The Company does not have any significant income tax filing requirements in any foreign jurisdiction. As of December 31, 2021, there were no pending tax audits in any jurisdiction. The tax returns are subject to statutes of limitations that vary by jurisdiction. At December 31, 2021, the Company remains subject to income tax examinations in the U.S. and various states for tax years 2018 through 2021; certain other states remain subject to examination for tax years 2017 through 2021. However, due to the Company’s NOL carryforwards in various jurisdictions, tax authorities have the ability to adjust carryforwards related to closed years until the statute expires on the year(s) in which the NOL carryforwards are utilized.