Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Income Tax (Expense) Benefit

The provision for income taxes for the years ended December 31, 2018 and 2017 consists of the following:

 

    2018     2017  
Current                
Federal   $ 766,070     $ 1,015,724  
State     -       -  
      766,070       1,015,724  
                 
Deferred                
Federal     -       -  
State     -       -  
                 
Provision for income taxes   $ 766,070     $ 1,015,724  
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, 2018 and 2017:

 

    2018     2017  
      %       %  
Federal statutory rate     21.00       34.00  
Permanent and other items     (5.81 )     (0.06 )
Beneficial conversion feature     -       (20.05 )
Federal income taxes audit and other adjustments     93.55     -  
Rate change     -       (10.40 )
Change in valuation allowance     (102.77 )     (1.49 )
      5.97       2.00  
Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are comprised of the following at December 31, 2018 and 2017:

 

    2018     2017  
Deferred income tax assets:                
Amortization   $ 914,520     $ 978,688  
Net operating loss carryforward     19,567,649       5,244,000  
Goodwill and intangible assets     -       (112,742 )
Allowance for doubtful accounts     703,873       259,110  
Charitable contributions     593       618  
Stock options     936,641       700,745  
Accrued liabilities     390,041       121,993  
Business interest expense     989,408       -  
Deferred state tax asset     1,139,059       595,531  
      24,641,784       7,787,943  
                 
Deferred income tax liabilities:                
Depreciation     (2,301,605 )     (406,310 )
      -       (406,310 )
Deferred tax asset, net     22,340,179       7,381,633  
                 
Less: valuation allowance     (22,340,179 )     (7,381,633 )
                 
Net deferred tax assets   $ -     $ -