Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes [Abstract]

Income Taxes

12. Income Taxes

The Company computes its expected annual effective income tax rate in accordance with ASC 740 and makes changes on a quarterly

basis, as necessary, based on certain factors such as changes in forecasted annual pre-tax income; changes to actual or forecasted

permanent book to tax differences; impacts from tax audits with state, federal or foreign tax authorities; impacts from tax law changes;

or change in judgment as to the realizability of deferred tax assets. The Company identifies items which are unusual and non-recurring

in nature and treats these as discrete events. The tax effect of discrete items is recorded in the quarter in which the discrete events occur. 

The Company’s effective tax rate for the six months ended June 30, 2022 and 2021 was

0.00

%, due primarily to its uncertainty of

realizing a benefit from net operating losses incurred during the period.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the

recorded deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent on the generation of future

taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversal

of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on these items

and the consecutive years of pretax losses (resulting from impairment), management determined that enough uncertainty exists relative

to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance for all taxing

jurisdictions.

The Company files income tax returns in the U.S. federal and various state and local jurisdictions. The Company also files returns in

numerous foreign jurisdictions that have varied years remaining open for examination, but generally the statute of limitations is three

to four years from when the return is filed. As of June 30, 2022, the Company currently has no ongoing audits.

The Company has US net operating loss (“NOL”) carryforwards for federal and state income tax purposes. Use of the NOL

carryforwards is limited under Section 382 of the Internal Revenue Code, as we have had a change in ownership of more than 50% of

our capital stock over a three-year period as measured under Section 382 of the Internal Revenue Code. These complex changes of

ownership rules generally focus on ownership changes involving shareholders owning directly or indirectly 5% or more of our stock,

including certain public “groups” of shareholders as set forth under Section 382 of the Internal Revenue Code, including those arising

from new stock issuances and other equity transactions. Some of these NOL carryforwards will expire if they are not used within

certain periods. At this time, we consider it more likely than not that we will not have sufficient taxable income in the future that will

allow us to realize these NOL carryforwards.