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 Income Before Income Tax, Domestic and Foreign

United States and foreign components of income before income taxes were as follows:

 

   

For the Years

Ended December 31,

 
    2019     2018  
United States   $ (14,210,716 )   $ (5,828,261 )
Foreign     (7,811 )     788,159  
Income before income taxes   $ (14,218,527 )   $ (5,040,102 )

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred tax assets or liabilities are presented below:

 

   

For the Years

Ended December 31,

 
    2019     2018  
Deferred tax assets:                
Stock-based compensation   $ 987,747     $ 682,115  
Goodwill and intangible assets     -       19,410  
Operating lease liabilities     158,430       -  
Net operating loss carryforwards     2,324,863       493,063  
Less: valuation allowance     (2,424,196 )     (1,194,587 )
Net deferred tax assets   $ 1,046,844     $ -  
                 
Deferred tax liabilities:                
Right of use assets     (153,741 )     -  
Goodwill and intangible assets     (811,000 )     -  
Property and equipment   $ (82,103 )   $ 341  
Net deferred tax liabilities   $ (1,046,844 )   $ 341  
Net deferred tax liabilities   $ -     $ 341  

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision (benefit) consists of the following:

 

   

For the Years

Ended December 31,

 
    2019     2018  
Current:            
Federal   $ -     $ 10,185  
Foreign     3,166       292,491  
State and local     (22,372 )     35,107  
Total current   $ (19,206 )   $ 337,783  
                 
Deferred:                
Federal   $ (896,468 )   $ (722,975 )
Foreign     (341 )     (2,316 )
State and local     (333,141     (10,102 )
Less: valuation allowance     1,229,609       701,525  
Total deferred   $ (341 )   $ (33,868 )
Income tax provision (benefit)   $ 19,547     $ 303,915  

Schedule of Effective Income Tax Rate Reconciliation

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

 

   

For the Years

Ended December 31,

 
    2019     2018  
Tax at federal statutory rate     21.0 %     21.0 %
Effect of U.S. tax law change     0.0 %     0.0 %
U.S. income attributable to pass-through entity     0.0 %     0.0 %
U.S. income subject to valuation allowance     -14.6 %     -20.5 %
State and local income taxes     0.2 %     0.0 %
Foreign income not subject to U.S. federal tax     0.0 %     0.0 %
Foreign tax     0.0 %     -6.3 %
Nondeductible expenses     -6.5 %     0.0 %
Other     0.0 %     -0.2 %
Effective income tax rate     0.1 %     -6.0 %