Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of Income Tax (Expense) Benefit

The income tax (expense) benefit for the years ended December 31, 2017 and 2016 consists of the following:

 

      2017       2016  
Current                
Federal   $ 1,015,724      $ (778,756  ) 
State     ---       ---   
      1,015,724       (778,756 ) 
                 
Deferred                
Federal     ---       ---   
State     ---       ---   
      ---       ---  
                 
Income tax expense (benefit)   $ 1,015,724     $ (778,756 ) 

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, 2017 and 2016:

 

    2017     2016  
    %     %  
Federal statutory rate     34.0       34.0  
Permanent and other items     (0.06 )     5.4  
Beneficial conversion feature     (20.05 )      --   
Other     --       (25.0 )
Rate change     (10.40 )     --  
Change in valuation allowance     (1.49 )      (12.0 ) 
      2.0       2.4  

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are comprised of the following at December 31, 2017 and 2016:

 

      2017       2016  
Deferred income tax assets:                
Amortization   $ 978,688     $ --  
Net operating loss carryforward     5,244,000       11,752,815  
Goodwill and intangible assets     (112,742  )      1,477,448  
Allowance for doubtful accounts     259,110        130,580   
Charitable contributions     618       891   
Stock options     700,745        1,010,164   
Accrued liabilities      121,993       254,165   
Deferred state tax asset     595,531       --  
      7,787,943       14,626,063   
Deferred income tax liabilities:                
Depreciation     (406,310 )      (969,933 ) 
      (406,310 )      (969,933 ) 
Deferred tax asset, net     7,381,633       13,656,130  
                 
Less: valuation allowance     (7,381,633 )      (13,656,130 ) 
                 
Net deferred tax assets   $ -     $ -