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 Components of Income Tax Expense (Benefit)
The income tax provision consisted of the following for the years ending December 31, 2018 and 2017:
 
 
December 31,
 
 
2018
 
2017
Current:
 
 
 
 
   Federal
 
$
(53,281
)
 
$
2,309,285

   State
 
36,116

 
489,863

Total Current:
 
(17,165
)
 
2,799,148

 
 
 
 
 
Deferred:
 
 
 
 
   Federal
 
(52,235
)
 
(789,274
)
   State
 
35,490

 
(43,355
)
Total Deferred
 
(16,745
)
 
(832,629
)
Net income tax (benefit) expense
 
$
(33,910
)
 
$
1,966,519

Schedule of components of deferred tax assets
The net deferred tax liabilities consisted of the following for the years ending December 31, 2018 and 2017:
 
 
December 31,
 
 
2018
 
2017
Deferred tax assets:
 
    
 
    
Net operating losses
 
$
4,421,423

 
$
716,819

Accrued compensation
 
465,430

 
271,437

Deferred rent
 
15,373

 
4,051

Tax credits
 
252,095

 

Stock-based compensation
 
1,922,736

 
1,291,230

Installment sale
 
508,291

 

Other reserves
 
262,260

 
72,881

Basis difference in tangible and intangible assets, net
 
2,968,764

 
2,019,272

Total deferred tax assets
 
10,816,372

 
4,375,690

Deferred tax liabilities:
 
 
 
 
Prepaid expenses
 
(160,474
)
 

Installment sales
 

 
(358,844
)
Total deferred tax liabilities
 
(160,474
)
 
(358,844
)
Deferred tax asset, net
 
10,655,898

 
4,016,846

Less valuation allowance
 
(10,725,136
)
 
(4,023,990
)
Net deferred taxes
 
$
(69,238
)
 
$
(7,144
)
Reconciliation of income tax expenses between federal statutory rate and effective income tax rate
The income tax benefit for the years ended December 31, 2018 and 2017 differed from the amounts computed by applying the U.S. federal income tax rate as follows:
 
 
December 31,
 
 
2018
 
2017
Federal statutory rate
 
21.00
 %
 
34.00
 %
Permanent Adjustments
 
(0.37
)%
 
0.17
 %
Built-in-loss
 
(0.33
)%
 
1.52
 %
State taxes
 
4.43
 %
 
27.91
 %
Research and development credit
 
0.61
 %
 
(1.04
)%
Change in statutory rate due to Tax Cuts and Job Act
 
 %
 
15.82
 %
NOL adjustment per § 382
 
 %
 
126.82
 %
Non-deductible IPR&D expense
 
(9.84
)%
 
 %
Other
 
(0.04
)%
 
0.04
 %
Change in valuation allowance
 
(15.37
)%
 
(191.03
)%
Effective income tax rate
 
0.09
 %
 
14.21
 %