Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes

Our provision (benefit) for income taxes for the years ended December 31, 2018 and 2017 was as follows:

 

    Year Ended December 31,  
    2018     2017  
Current:                
Federal   $ -     $ -  
State     -       -  
Total deferred tax benefit     -       -  
                 
Deferred:                
Federal     (940,510 )     (116,783 )
State     (292,047 )     (50,004 )
Total deferred tax benefit     (1,232,557 )     (166,787 )
                 
Valuation allowance     329,756       166,787  
Net deferred tax benefit     (902,801 )     -  
                 
Total tax provision (benefit)   $ (902,801 )   $ -  

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of our effective income tax rate and statutory income tax rate for the years ended December 31, 2018 and 2017 is as follows:

 

    Year Ended December 31,  
    2018     2017  
Federal statutory income tax rate     21.00 %     34.00 %
State tax rate, net     4.58 %     5.45 %
Permanent differences     (0.90 )%     (0.02 )%
Impact of change in federal income tax rates     -       (11.92 )%
Deferred tax asset valuation allowance     (5.33 )%     (27.51 )%
 Effective income tax rate     (19.35 )%     -  

Schedule of Deferred Tax Assets

The significant components of our deferred tax assets and liabilities for Federal and state income taxes consisted of the following:

 

    December 31,  
    2018     2017  
Deferred tax assets:                
Non-current:                
Net operating loss carry forward – Federal   $ 559,817     $ 49,822  
Net operating loss carry forward – State     173,743       21,333  
Deferred rent     2,742          
Stock option expense     20,380          
Depreciation     4,549          
Intangible asset     -          
Start-up expenditures     468,872       95,632  
Total non-current deferred tax assets     1,230,103       166,787  
Valuation allowance for deferred tax assets     (496,542 )     (166,787 )
Total deferred tax assets   $ 733,561     $ -  
                 
Deferred Tax Liabilities:                
Non-current:                
Intangible asset, net of tax effect of intangible asset amortization     (2,867,907 )     -  
Total non-current deferred tax liabilities     (2,867,907 )     -  
                 
Total deferred tax asset (liability)   $ (2,134,346 )   $ -