Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
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, 2019 and 2018:

 

    December 31,  
    2019     2018  
Goodwill and intangible assets   $ (44,715 )   $ (183,082 )
Developed technology     (25,985 )     (53,384 )
Derivative liability     (112,564 )     (113,811 )
Property and equipment     18,399       12,140  
Other deferred tax assets     42,678       44,654  
Settlements     150,290       191,781  
Stock based compensation     331,731       403,587  
Net operating loss     7,161,406       6,843,840  
Valuation allowance     (7,742,494 )     (7,543,369 )
Net deferred tax liability   $ (221,254 )   $ (397,644 )

Schedule of Benefits for Income Taxes

The benefit for income taxes for the years ended December 31, 2019 and 2018 consists of the following:

 

    Year Ended December 31,  
    2019     2018  
Federal:            
Current provision   $ -     $ -  
Deferred provision (benefit)     (134,163 )     (1,057,488 )
      (134,163 )     (1,057,488 )
State:                
Current provision   $ -     $ -  
Deferred provision (benefit)     (43,338 )     (296,047 )
      (43,338 )     (296,047 )
Foreign:                
Current provision   $ -     $ -  
Deferred provision (benefit)     -       -  
      -       -  
                 
Income tax expense (benefit)   $ (177,501 )   $ (1,353,535 )

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,  
    2019     2018  
Expected federal statutory rate     21.0 %     21.0 %
State income taxes, net of federal benefit     6.1 %     6.4 %
Impairment charge     0.0 %     -8.6 %
Valuation allowance     -13.5 %     -8.0 %
Permanent items     -0.1 %     0.0 %
Rate change     -2.6 %     0.4 %
Other     -4.9 %     -1.5 %
      6.0 %     9.7 %