Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

The income tax provision reconciled to the tax computed at the statutory from continuing operations Federal rate follows:

	2020			2019
Tax Expense at Statutory Rate	$	1,364,191		$	626,468
Valuation Allowance		(1,371,195	)		(631,775	)
Non-Deductible Expenses and Other		7,004			5,307
State Taxes, Net of Federal Benefit		89,618			95,116
Income tax expense	$	89,618		$	95,116
Current	$	89,618		$	95,116
Total	$	89,618		$	95,116

Deferred income taxes are comprised of the following at December 31, 2019 and 2018:

	2020			2019
Deferred tax assets (liabilities):
Inventories	$	22,620		$	21,495
Stock options and other		6,836			57,019
Contingencies and accruals		28,580			32,154
Property and equipment		(256,065	)		(180,300	)
Net operating loss carryforward		6,527,548			7,763,103
Goodwill and intangibles		27,085			34,328
Total deferred tax assets, net		6,356,604			7,727,799
Valuation allowance	$	(6,356,604	)	$	(7,727,799	)
Net Deferred tax asset		-			-

As of December 31, 2020, the Company had $2,729,636 of net operating loss carry-forwards, related to the Superior Galleries acquisition which may be available to reduce taxable income in future years, subject to the applicable Internal Revenue Code Section 382 limitations. As of December 31, 2020, the Company had approximately $28,353,926 of net operating loss carry-forwards related to Superior Galleries’ post acquisition operating losses and other operating losses incurred by the Company’s other operations. These carry-forwards will expire, starting in 2026 if not utilized.

The Company is uncertain of our ability to accurately project income into the future due to the economic conditions caused by the pandemic,therefore, the Company is waiving any adjustment to the current valuation allowance. 

As of December 31, 2020, the Company determined based on consideration of all available evidence, including but not limited to historical, current and future anticipated financial results as well as applicable IRS limitations and expiration dates related to the Company’s net operating losses, a full valuation allowance should be recorded for its net deferred tax assets.