Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Income Tax (Expense) Benefit

The provision for income taxes for the years ended December 31, 2019 and 2018 consists of the following:

 

    2019     2018  
Current                
Federal   $    -     $ 766,070  
State     -       -  
      -       766,070  
                 
Deferred                
Federal     -       -  
State     -       -  
      -       -  
                 
Income tax expense   $ -     $ 766,070  
Schedule of Effective Income Tax Rate Reconciliation

The following reconciles the Federal statutory income tax rate to the Company’s effective tax rate for the years ended December 31, 2019 and 2018:

 

    2019     2018  
      %       %  
Federal statutory rate     21.0       21.0  
Permanent and other items     (10.67 )     (5.81 )
Federal income taxes audit and other adjustments             93.55  
Change in valuation allowance     (10.3 )     (102.77 )
      0.03       5.97  
Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are comprised of the following at December 31, 2019 and 2018:

 

    2019     2018  
Deferred income tax assets:                
Amortization   $ 868,974     $ 914,520  
Net operating loss carryforward     16,053,316       19,567,649  
Allowance for doubtful accounts     1,559,750       703,873  
Charitable contributions     623       593  
Stock options     970,496       936,641  
Accrued liabilities     467,086       390,041  
Business interest expense     2,323,330       989,408  
Deferred state tax asset     1,428,268       1,139,059  
      23,671,843       24,641,784  
                 
Deferred income tax liabilities:                
Depreciation     (1,578,355 )     (2,301,605 )
      (1,578,355 )     (2,301,605 )
Deferred tax asset, net     22,093,488       22,340,179  
                 
Less: valuation allowance     (22,093,488 )     (22,340,179 )
                 
Net deferred tax assets   $ -     $ -