| Schedule of Income Tax Provision (Benefit) |
The income tax provision (benefit) for
the years ended December 31, 2018 and 2017 consists of the following:
| |
|
For the Year Ended |
|
| |
|
December 31, |
|
| |
|
2018 |
|
|
2017 |
|
| Federal: |
|
|
|
|
|
|
|
|
| Current |
|
$ |
- |
|
|
$ |
- |
|
| Deferred |
|
|
(581,300 |
) |
|
|
5,974,700 |
|
| |
|
|
|
|
|
|
|
|
| State and local: |
|
|
|
|
|
|
|
|
| Current |
|
|
- |
|
|
|
- |
|
| Deferred |
|
|
(127,000 |
) |
|
|
(1,953,800 |
) |
| |
|
|
(708,300 |
) |
|
|
4,020,900 |
|
| Change in valuation allowance |
|
|
708,300 |
|
|
|
(4,020,900 |
) |
| Income tax provision (benefit) |
|
$ |
- |
|
|
$ |
- |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The tax effects of temporary differences
that give rise to deferred tax assets and liabilities are presented below:
| |
|
For The Years Ended |
|
| |
|
December 31, |
|
| |
|
2018 |
|
|
2017 |
|
| Deferred Tax Assets: |
|
|
|
|
|
|
|
|
| Net operating loss carryforwards |
|
$ |
26,073,500 |
|
|
$ |
18,351,600 |
|
| Stock-based compensation |
|
|
- |
|
|
|
3,128,200 |
|
| Accruals |
|
|
296,300 |
|
|
|
4,502,700 |
|
| Goodwill |
|
|
1,586,300 |
|
|
|
1,586,300 |
|
| Internet expense |
|
|
233,700 |
|
|
|
- |
|
| Intangible assets |
|
|
245,000 |
|
|
|
271,400 |
|
| Inventory |
|
|
53,000 |
|
|
|
- |
|
| Allowance for doubtful accounts |
|
|
22,000 |
|
|
|
9,100 |
|
| Tax credits |
|
|
536,600 |
|
|
|
488,800 |
|
| Gross deferred tax assets |
|
|
29,046,400 |
|
|
|
28,338,100 |
|
| |
|
|
|
|
|
|
|
|
| Deferred Tax Liabilities: |
|
|
|
|
|
|
|
|
| Fixed assets |
|
|
(528,400 |
) |
|
|
(528,400 |
) |
| Gross deferred tax liabilities |
|
|
(528,400 |
) |
|
|
(528,400 |
) |
| |
|
|
|
|
|
|
|
|
| Net deferred tax assets |
|
|
28,518,000 |
|
|
|
27,809,700 |
|
| |
|
|
|
|
|
|
|
|
| Valuation allowance |
|
|
(28,518,000 |
) |
|
|
(27,809,700 |
) |
| |
|
|
|
|
|
|
|
|
| Deferred tax asset, net of valuation allowance |
|
$ |
- |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Changes in valuation allowance |
|
$ |
708,300 |
|
|
$ |
(4,020,900 |
) |
|