INCOME TAXES

9 Months Ended

Sep. 30, 2022

INCOME TAXES

INCOME TAXES

NOTE 7 – INCOME TAXES

The Company is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company had no U.S. taxable income for the nine months ended September 30, 2022 and 2021.

The Company’s Greece subsidiaries are governed by the income tax laws of Greece. The corporate tax rate in Greece is 22% on income reported in the statutory financial statements after appropriate tax adjustments.

The Company’s United Kingdom subsidiaries are governed by the income tax laws of the United Kingdom. The corporate tax rate in the United Kingdom is 19% on income reported in the statutory financial statements after appropriate tax adjustments.

As of September 30, 2022 and 2021, the Company’s effective tax rate differs from the U.S. federal statutory tax rate primarily due to a valuation allowance recorded against net deferred tax assets in in the United States and the United Kingdom.

We regularly review deferred tax assets to assess their potential realization and establish a valuation allowance for portions of such assets to reduce the carrying value if we do not consider it to be more likely than not that the deferred tax assets will be realized. Our review includes evaluating both positive (e.g., sources of taxable income) and negative (e.g., recent historical losses) evidence that could impact the realizability of our deferred tax assets. As of September 30, 2022, we believe that it is more likely than not that the benefit from our United Kingdom deferred tax assets will not be realized, as such, we recorded a $288,870 valuation allowance. We believe that there is sufficient positive evidence to conclude that it is more likely than not that Greek deferred tax assets are realizable. The Company continues to maintain a valuation allowance against all net deferred tax assets in the United States. Foreign valuation allowances were reversed on December 31, 2020.

For the three months ended September 30, 2022, and 2021, the Company has recorded tax expense in any jurisdiction where it is subject to income tax, in the amount of $398,066 and $168,561, respectively, on the condensed consolidated statements of operations and comprehensive loss.

For the nine months ended September 30, 2022, and 2021, the Company has recorded tax expense in the amount of $473,296 and $69,152, respectively, on the condensed consolidated statements of operations and comprehensive loss.