| Note 9 - Income Taxes |
The Company has estimated net operating losses for the years ended December 31, 2020 and 2019 of $24.0 million and $17.3 million, respectively, available to offset taxable income in future years. The significant components of deferred income taxes and assets as of December 31, 2020 and December 31, 2019 are as follows: |
| December 31, 2020
|
|
| December 31, 2019
|
|
| Net Deferred Tax Liability
|
| $
|
|
| $
|
|
| Excess of tax over book depreciation and amortization
|
|
| (966 | ) |
|
| (3,901 | ) |
| ROU Asset
|
|
| (69,407 | ) |
|
| (41,250 | ) |
| Lease Liability
|
|
| 73,407 |
|
|
| 43,896 |
|
| Prepaid expenses
|
|
| - |
|
|
| - |
|
| Allowance for doubtful accounts
|
|
| - |
|
|
| - |
|
| Accrued expenses
|
|
| 1,154 |
|
|
| 1,154 |
|
| Stock-based compensation
|
|
| 21,533 |
|
|
| - |
|
| Net Operating Losses carry-forward
|
|
| 24,011,113 |
|
|
| 17,326,179 |
|
| Research and development tax credits
|
|
| 390,666 |
|
|
| 231,243 |
|
| Gross deferred tax assets
|
|
| 24,427,500 |
|
|
| 17,557,321 |
|
| Valuation allowance
|
|
| (24,427,500 | ) |
|
| (17,557,321 | ) |
|
|
|
|
|
|
|
|
|
|
| Net deferred tax asset
|
|
| - |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
| Change in Valuation Allowance
|
|
| (6,870,179 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 2020
|
|
| December 31, 2019
|
|
| Summary Rate Reconciliation
|
| %
|
|
|
| %
|
|
| Federal statutory rate
|
|
| 21.0 |
|
|
| 21.0 |
|
| State income taxes, net of federal benefit
|
|
| - |
|
|
| - |
|
| Permanent Differences
|
|
| 6.1 |
|
|
| 4.1 |
|
| Stock based compensation
|
|
| (1.3 | ) |
|
| (2.4 | ) |
| Federal Research & Development Credits
|
|
| 0.5 |
|
|
| 0.6 |
|
| Foreign taxes
|
|
| 7.4 |
|
|
| 6.7 |
|
| Federal Deferred Rate Decrease
|
|
| - |
|
|
| (0.2 | ) |
| Change in Valuation Allowance
|
|
| (33.7 | ) |
|
| (29.8 | ) |
| Total
|
|
| - |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
| Disclosure Amounts
|
| December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Losses - United States
|
|
| 21,963,567 |
|
|
|
|
|
| Net Operating Losses - Foreign
|
|
| 69,344,065 |
|
|
|
|
|
| Credit Carryforward - United States
|
|
| - |
|
|
|
|
|
| Credit Carryforward - Foreign
|
|
| 390,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase in Valuation Allowance
|
|
| 6,870,179 |
|
|
|
|
|
|