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 Net Deferred Tax Assets and Liabilities

The Company has the following net deferred tax assets and liabilities at December 31, 2018 and 2017:

 

    December 31,  
    2018     2017  
Goodwill and intangible assets   $ (183,082 )   $ (1,591,326 )
Developed technology     (53,384 )     (42,698 )
Derivative liability     (113,811 )     (112,149 )
Property and equipment     12,140       85,351  
Other deferred tax assets     44,654       47,879  
Settlements     191,781       39,442  
Lease liability     -       23,081  
Stock based compensation     403,587       214,610  
Net operating loss     6,843,840       5,536,896  
Valuation allowance     (7,340,511 )     (6,004,605 )
Net deferred tax liability   $ (194,786 )   $ (1,803,519 )

Schedule of Benefits for Income Taxes

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

 

    Year Ended December 31,  
    2018     2017  
Federal:                
Current provision   $ -     $ -  
Deferred provision (benefit)     (1,097,974 )     (1,798,585 )
      (1,097,974 )     (1,798,585 )
State:                
Current provision   $ -     $ -  
Deferred provision (benefit)     (307,901 )     (51,170 )
      (307,901 )     (51,170 )
Foreign:                
Current provision   $ (210,177 )   $ 104,241  
Deferred provision (benefit)     -       -  
      (210,177 )     104,241  
                 
Income tax expense (benefit)   $ (1,616,052 )   $ (1,745,514 )

Reconciliation of Statutory Federal Income Tax Rate

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:

 

    Year Ended December 31,  
    2018     2017  
Expected federal statutory rate     21.0 %     34.0 %
State income taxes, net of federal benefit     6.4 %     4.8 %
Change in expected future federal tax rate     0.0 %     -7.6 %
Impairment charge     -8.6 %     -23.6 %
Valuation allowance     -8.0 %     0.9 %
Permanent items     0.0 %     -0.1 %
Rate change     0.4 %     0.0 %
Other     -1.5 %     -1.1 %
      9.7 %     7.3 %