| SCHEDULE OF (LOSS) INCOME BEFORE PROVISION FOR TAX |
The
following is a geographical breakdown of loss before the provision for income taxes:
| | |
Year ended September 30, | |
| | |
2021 | | |
2020 | |
| | |
| | |
Restated | |
| Domestic | |
$ | 30,957 | | |
$ | (6,422,704 | ) |
| Foreign | |
| 738,255 | | |
| (933,531 | ) |
| Loss before provision for income taxes | |
$ | | |
$ | ) |
|
| SCHEDULE OF PROVISION FOR INCOME TAXES |
The
provision for income taxes consisted of the following:
| | |
September
30, 2021 | | |
September
30, 2020 | |
| | |
| | |
Restated | |
| Current (benefit)/provision | |
|
| | |
| | |
| Federal | |
$ |
- | | |
$ | - | |
| State | |
|
375,434 | | |
| (209,032 | ) |
| Foreign | |
|
- | | |
| - | |
| Total
current (benefit)/provision | |
|
375,434 | | |
| (209,032 | ) |
| | |
|
| | |
| | |
| Deferred provision | |
|
| | |
| | |
| Federal | |
|
- | | |
| 2,282,867 | |
| State | |
|
- | | |
| - | |
| Foreign | |
|
- | | |
| - | |
| Total
deferred provision | |
$ |
- | | |
$ | 2,282,867 | |
| | |
|
| | |
| | |
| Total (benefit)/provision
for income taxes | |
$ |
375,434 | | |
$ | 2,073,835 | |
| | |
|
| | |
| | |
| Effective Income tax rate | |
|
48.81 | % | |
| -28.19 | % |
|
| SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES |
The
components of our deferred tax assets and liabilities are summarized as follows:
| | |
September 30, 2021 | | |
September 30, 2020 | |
| | |
| | |
Restated | |
| Deferred Tax Assets: | |
| | | |
| | |
| Net operating loss carryforwards | |
$ | 8,702,738 | | |
$ | 20,482,973 | |
| Inventory | |
| 1,405,057 | | |
| - | |
| Prepaid expenses | |
| - | | |
| - | |
| Allowance for bad debt | |
| 35,345 | | |
| 3,491 | |
| Fixed Assets | |
| - | | |
| 19,271 | |
| Goodwill amortization | |
| - | | |
| - | |
| Non-qualified stock options | |
| - | | |
| - | |
| Warrants (interest expense) | |
| 1,155,642 | | |
| - | |
| Accruals | |
| 280,447 | | |
| 2,699,246 | |
| Warranty Reserve | |
| 28,002 | | |
| - | |
| Foreign Tax Credits | |
| - | | |
| 354,000 | |
| Other | |
| 4,358
| | |
| - | |
| Total gross deferred taxes | |
| 11,611,589 | | |
| 23,558,981 | |
| Valuation allowance | |
| (9,491,650 | ) | |
| (22,720,711 | ) |
| Net deferred tax assets | |
| 2,119,939 | | |
| 838,270 | |
| | |
| | | |
| | |
| Deferred Tax Liabilities: | |
| | | |
| | |
Inventory and other Reserves | |
| (638,230 | ) | |
| - | |
| Inventory | |
| - | | |
| (2,277 | ) |
| Prepaid expenses | |
| (87,934 | ) | |
| (45,563 | ) |
| Goodwill amortization | |
| (557,074 | ) | |
| (428,395 | ) |
| Research and development expenses | |
| - | | |
| - | |
| Depreciation | |
| (836,701 | ) | |
| (319,090 | ) |
| Gain/loss on fixed asset disposal | |
| - | | |
| - | |
| Other | |
| - | | |
| (42,945 | ) |
| Total deferred tax liabilities | |
| (2,119,939 | ) | |
| (838,270 | ) |
| | |
| | | |
| | |
| Total deferred tax assets (liabilities) | |
$ | - | | |
$ | - | |
|