Income Taxes (Tables)

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:

	For the Three Months Ended March 31, 2022		For the Three Months Ended March 31, 2021
Current:
Federal	$	-	$	-
State		4,856		4,360
Income tax expense		4,856		4,360
Deferred:
Federal		-		-
State		-		-
Income tax benefit		-		-
Total income tax expense (benefit), net	$	4,856	$	4,360

Significant Components of Deferred Income Tax Assets and Liabilities

Significant components of the Company's deferred income tax assets and liabilities are as follows:

	March 31, 2022			December 31, 2021
Deferred tax assets:
Net operating loss carryover	$	1,318,844		$	1,262,269
Accounts receivable		135,521			104,635
Compensation		558,633			555,936
Inventory		489,898			523,131
Other		20,145			1,244
Total deferred tax assets		2,523,041			2,447,215
Deferred tax liabilities:
Intangibles		(196,805	)		(198,801	)
Property and equipment		(4,106	)		(1,522	)
Total deferred tax liabilities		(200,911	)		(200,323	)
Deferred tax assets, net		2,322,130			2,246,892
Valuation allowance:
Beginning of year		(2,246,892	)		(1,816,546	)
Increase during the year		(75,238	)		(430,346	)
Ending balance		(2,322,130	)		(2,246,892	)
Net deferred tax asset	$	-		$	-

Reconciliation of Income Tax Computed at U.S. Statutory Rate to Effective Income Tax Rate

A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows:

	Three Months Ended
	March 31, 2022			March 31, 2021
Expected U.S. federal incomes as statutory rate		21.0	%		21.0	%
Permanent differences		0.0	%		0.0	%
Other		0.0	%		0.0	%
State and local income taxes, net of federal benefit		-1.1	%		-0.8	%
Change in deferred tax asset valuation allowance		-21.3	%		-21.2	%
Effective tax rate		-1.4	%		-1.0	%