TAXATION (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
|---|
| TAXATION |
|
| Schedule of domestic and foreign components of loss before income taxes |
The domestic and foreign components of loss before income taxes for the years ended December 31, 2021 and 2020 are as follows:
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
2021 |
|
2020 |
Domestic |
|
$ |
23,500,189 |
|
$ |
6,426,623 |
Foreign |
|
|
(11,191,729) |
|
|
(8,944,609) |
Income (loss) before income taxes |
|
|
12,308,460 |
|
|
(2,517,986) |
|
| Schedule of provision for income taxes |
For the years ended December 31, 2021 and 2020 income taxes expense consisted of:
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
2021 |
|
2020 |
Current taxes: |
|
|
|
|
|
|
Federal |
|
$ |
38,461,470 |
|
$ |
18,957,490 |
State |
|
|
7,358,780 |
|
|
2,813,100 |
Total Current |
|
|
45,820,250 |
|
|
21,770,590 |
Deferred taxes: |
|
|
|
|
|
|
Federal |
|
|
(13,414,139) |
|
|
110,928 |
State |
|
|
(3,145,200) |
|
|
205,945 |
Foreign |
|
|
(2,980,526) |
|
|
(1,386,577) |
Change in valuation allowance |
|
|
2,980,526 |
|
|
1,386,577 |
Total Deferred |
|
|
(16,559,339) |
|
|
316,873 |
Total income tax expense: |
|
$ |
29,260,911 |
|
$ |
22,087,463 |
|
| Schedule of reconciliation between the effective tax rate on income from continuing operations and statutory tax |
The difference between the income tax expense for the years ended December 31, 2021 and 2020 and the expected income taxes based on the statutory tax rate applied to income (loss) before income tax as follows:
|
|
|
|
|
|
|
|
|
|
Years Ended |
|
|
|
2021 |
|
2020 |
|
Income (Loss) before income taxes |
|
$ |
12,308,460 |
|
$ |
(2,517,986) |
|
Statutory tax rates |
|
|
21 |
% |
|
21 |
% |
Expense (Recovery) based on statutory rates |
|
|
2,584,776 |
|
|
(528,777) |
|
Foreign tax rate differential |
|
|
(671,504) |
|
|
(536,978) |
|
State taxes |
|
|
4,981,840 |
|
|
2,990,031 |
|
Acquisitions costs |
|
|
1,856,910 |
|
|
491,748 |
|
Non-deductible expenses |
|
|
18,235,273 |
|
|
18,705,349 |
|
Tax rate change |
|
|
(767,185) |
|
|
206,828 |
|
Change in valuation allowance |
|
|
2,980,526 |
|
|
1,386,577 |
|
Other differences |
|
|
60,275 |
|
|
(627,315) |
|
Income tax expense |
|
$ |
29,260,911 |
|
$ |
22,087,463 |
|
|
| Schedule of components of deferred tax assets and liabilities, and deferred tax assets that have not been recognized |
At December 31, 2021 and 2020, the components of deferred tax assets and liabilities were as follows:
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2021 |
|
2020 |
Deferred tax assets |
|
|
|
|
|
|
Net operating losses |
|
$ |
7,966,924 |
|
$ |
4,686,002 |
Share issuance costs |
|
|
2,245,164 |
|
|
2,598,470 |
Investments |
|
|
34,185 |
|
|
146,724 |
Inventory |
|
|
153,007 |
|
|
161,508 |
Other assets |
|
|
1,051,992 |
|
|
50,782 |
Total deferred tax assets |
|
|
11,451,272 |
|
|
7,643,486 |
Valuation allowance |
|
|
(8,552,068) |
|
|
(5,571,542) |
Total deferred tax assets |
|
|
2,899,204 |
|
|
2,071,944 |
Deferred tax liabilities |
|
|
|
|
|
|
Depreciation |
|
$ |
(6,071,445) |
|
$ |
(81,156) |
Amortization |
|
|
(64,197,066) |
|
|
(14,905,067) |
Debt financing costs |
|
|
(1,821,085) |
|
|
(1,713,700) |
Other liabilities |
|
|
(890,927) |
|
|
(50,012) |
Total deferred tax liabilities |
|
|
(72,980,523) |
|
|
(16,749,935) |
Net deferred tax liabilities |
|
$ |
(70,081,319) |
|
$ |
(14,677,991) |
|