| DEFERRED TAX ASSETS AND LIABILITIES |
NOTE 13 — DEFERRED TAX ASSETS AND LIABILITIES
Deferred tax assets and (liabilities) as of December 31, 2021 and 2020 and the related activity for the years ended December 31, 2021 and 2020 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized |
|
Recognized |
|
|
|
|
Balance |
|
In |
|
In |
|
Balance |
|
|
December 31, |
|
Other |
|
Provision For |
|
December 31, |
|
|
2020 |
|
Comprehensive Income |
|
Income Taxes |
|
2021 |
Non-current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets |
|
|
— |
|
|
— |
|
|
— |
|
$ |
— |
Property, plant, and equipment |
|
|
(979,612) |
|
|
— |
|
|
96,537 |
|
$ |
(883,075) |
Other |
|
|
(8,431) |
|
|
|
|
|
8,431 |
|
$ |
— |
|
|
|
(988,043) |
|
|
— |
|
|
104,968 |
|
|
(883,075) |
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
— |
|
|
— |
|
|
— |
|
$ |
— |
Prepaid expenses |
|
|
(11,849) |
|
|
— |
|
|
(5,346) |
|
$ |
(17,195) |
Other (Section 24C allowance) |
|
|
26,452 |
|
|
23,451 |
|
|
116 |
|
$ |
50,019 |
|
|
|
14,603 |
|
|
23,451 |
|
|
(5,230) |
|
|
32,824 |
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
— |
|
|
— |
|
|
— |
|
$ |
— |
Income in Advance |
|
|
98,015 |
|
|
— |
|
|
29,114 |
|
$ |
127,129 |
Tax Losses |
|
|
— |
|
|
— |
|
|
— |
|
$ |
— |
Net deferred tax assets and (liabilities) |
|
$ |
(875,425) |
|
$ |
23,451 |
|
$ |
128,852 |
|
$ |
(723,122) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
Recognized In |
|
Recognized In |
|
Balance |
|
|
2019, as |
|
Business |
|
Provision For |
|
December 31, |
|
|
restated |
|
Combinations |
|
Income Taxes |
|
2020 |
Non-current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
Property, plant, and equipment |
|
|
(1,005,005) |
|
|
(69,537) |
|
|
94,930 |
|
|
(979,612) |
Other |
|
|
— |
|
|
— |
|
|
(8,431) |
|
|
(8,431) |
|
|
|
(1,005,005) |
|
|
— |
|
|
86,499 |
|
|
(988,043) |
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Other (Section 24C allowance) |
|
|
(11,709) |
|
|
— |
|
|
(140) |
|
|
(11,849) |
Other (Other) |
|
|
— |
|
|
— |
|
|
26,452 |
|
|
26,452 |
|
|
|
(11,709) |
|
|
— |
|
|
26,312 |
|
|
14,603 |
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Income in Advance |
|
|
105,108 |
|
|
— |
|
|
(7,093) |
|
|
98,015 |
Tax Losses |
|
|
174,963 |
|
|
|
|
|
(174,963) |
|
|
— |
|
|
|
280,070 |
|
|
— |
|
|
(182,056) |
|
|
98,015 |
Net deferred tax assets and (liabilities) |
|
$ |
(736,645) |
|
$ |
(69,537) |
|
$ |
(69,245) |
|
$ |
(875,425) |
Unused tax losses for which no deferred tax assets have been recognized as of December 31, 2021 and 2020 are as follows:
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2021 |
|
2020 |
Unused tax losses for which no deferred tax assets has been recognized |
|
$ |
(9,982,291) |
|
$ |
(6,155,623) |
Potential tax benefit of such unused tax losses at applicable statutory tax rates |
|
$ |
(2,050,255) |
|
$ |
(1,305,245) |
Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements as of December 31, 2021 and 2020.
No tax audits were commenced or were in process during the years ended December 31, 2021 and 2020 and no tax related interest or penalties were incurred during those years.
|