|6 Months Ended|
Jun. 30, 2018
|Income Tax Disclosure [Abstract]|
|Income Tax Disclosure [Text Block]||
Note 6 — Income Taxes
United States and foreign components of (loss) income before income taxes were as follows:
Fergco was a Subchapter S pass-through entity for income tax purposes prior to its acquisition by Xspand on September 30, 2017. Accordingly, Fergco was not subject to income taxes prior to the acquisition and therefore the tax provision related to the United States income is only for the period from January 1, 2018 to June 30, 2018.
The Company’s foreign entity is SRM, which is an entity subject to the Hong Kong, China tax regime. The Hong Kong tax returns remain subject to examination by local taxing authorities beginning with the tax year ended December 31, 2011.
The tax effects of temporary differences that give rise to deferred tax assets or liabilities are presented below:
The income tax provision consists of the following:
A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef