Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes, which includes the pre and post IPO periods during the year ended December 31, 2021, were as follows:

 

 

 

December 31,

 

 

 

2021

 

Domestic

 

$

(31,959,650

)

Foreign

 

 

-

 

Income before income taxes and NCI

 

$

(31,959,650

)

Schedule of Significant Components of Income Tax Expense (Benefit)

Significant components of income tax expense (benefit) were as follows:

 

 

 

December 31,

 

 

 

2021

 

Current income taxes:

 

 

 

Federal

 

$

-

 

State

 

 

30,272

 

Foreign

 

 

-

 

Total current income taxes

 

$

30,272

 

Deferred income taxes:

 

 

 

Federal

 

$

-

 

State

 

 

-

 

Foreign

 

 

-

 

Total deferred income taxes

 

$

-

 

Other tax expense (benefit)

 

 

 

Income tax expense (benefit)

 

$

30,272

 

 

 

Schedule of Reconciliation of Income Taxes Computed at U.S. Federal Statutory Income Tax Rate

A reconciliation of income taxes computed at the U.S. federal statutory income tax rate of 21% to income tax (expense) benefit was as follows:

 

 

 

December 31,

 

 

 

2021

 

U.S. federal income taxes at statutory rate

 

$

(6,711,527

)

State and local income tax, net of federal benefit

 

$

30,272

 

Permanent tax adjustments

 

$

-

 

Pre-IPO Income

 

$

3,677,549

 

Noncontrolling interest

 

$

1,700,704

 

FMV of Warrant

 

$

(53,088

)

Remeasurement of TRA

 

$

-

 

Change in valuation allowance

 

$

1,386,362

 

Other

 

$

-

 

Income tax expense (benefit)

 

$

30,272

 

 

 

 

 

Schedule of Components of Deferred Tax Assets and Liabilities

The tax effect of temporary differences that gave rise to significant components of deferred tax assets and liabilities consisted of the following at December 31, 2021:

 

 

 

December 31,

 

 

 

2021

 

Deferred Tax Assets

 

 

 

Investment in partnership

 

$

6,877,827

 

Net Operating Loss

 

 

1,575,425

 

163(j)

 

 

160,527

 

Deferred Tax Assets

 

$

8,613,779

 

Valuation Allowance

 

 

(8,613,779

)

Net deferred tax asset

 

$

-

 

Deferred Tax Liabilities

 

 

 

Other

 

 

(67,223

)

Deferred Tax Liabilities

 

 

(67,223

)

Net deferred tax asset/ (liability)

 

$

(67,223

)

Summary of Valuation Allowance The Company's valuation allowance increased by approximately $8.6 million in 2021.

 

 

 

December 31,

 

 

 

2021

 

Beginning balance

 

$

-

 

Charged to costs and expenses

 

 

1,386,362

 

Charged to equity

 

 

7,227,417

 

Ending balance

 

$

8,613,779