Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 13 – Income Taxes

As of September 30, 2021, the Company had an effective tax rate of approximately 25.8%. The Company has federal net operating loss carryforwards of approximately $18.2 million and state net operating losses of approximately $19.5 million. There is no expiration of the federal loss carryforwards as all federal net operating loss carryforwards were generated after December 31, 2017. The state operating loss carryforwards are subject to expiration beginning on December 31, 2031. The deferred tax asset relating to the net operating loss carryforwards is offset by a full valuation allowance. The principal differences between the operating loss for income tax purposes and financial reporting purposes are shares issued for services and share-based compensation and a temporary difference in depreciation expense.