Annual report pursuant to Section 13 and 15(d)

Income Tax (Tables)

v3.19.1
Income Tax (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Tables  
Schedule of Components of Income Tax Expense

The components of income tax expense (benefit) attributable to continuing operations are as follows:


 

 

2018

 

 

2017

 

Current Expense:

 

 

 

 

 

 

Federal

 

$

—

 

 

$

—

 

State

 

 

—

 

 

 

—

 

Foreign

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

Deferred Expense:

 

 

 

 

 

 

 

 

Federal

 

$

(985,488

)

 

$

(762,580

)

State

 

 

—

 

 

 

(46,960

)

Foreign

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

Total

 

$

(985,488

)

 

$

(809,540

)

Schedule of Income Tax Rate Reconciliation

The differences between the company’s income tax expense attributable to continuing operations and the expense computed at the 21 % United States statutory income tax rate were as follows:


 

 

2018

 

 

2017

 

Federal income tax expense at statutory rate:

 

$

(3,577,000

)

 

$

(4,495,000

)

Increase (reduction) in income tax resulting from:

 

 

 

 

 

 

 

 

State Income Taxes

 

 

(207,000

)

 

 

(194,000

)

Foreign Rate Differential

 

 

(17,000

)

 

 

(16,000

)

Nondeductible Expenses

 

 

7,000

 

 

 

9,000

 

Prior Period True-Up - Pelican

 

 

208,000

 

 

 

—

 

Research & Development Credit

 

 

(763,000

)

 

 

(409,000

)

Stock Based Compensation

 

 

60,000

 

 

 

84,000

 

Acquisition Costs

 

 

—

 

 

 

96,000

 

Reserve for Loss Carryforwards Limited by Sec. 382

 

 

22,000

 

 

 

(541,000

)

Tax Reform Impact

 

 

—

 

 

 

(8,024,000

)

Other

 

 

25,512

 

 

 

45,460

 

Increase (Decrease) in Valuation Allowance

 

 

3,256,000

 

 

 

(3,445,000

)

 

 

 

 

 

 

 

 

 

 

 

$

(985,488

)

 

$

(809,540

)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and operating loss carryforwards that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows at December 31, 2018 and December 31, 2017:


 

 

2018

 

 

2017

 

Deferred tax assets:

 

 

 

 

 

 

Net Operating Loss Carryfowards

 

$

18,731,555

 

 

$

15,117,487

 

R&D Credits

 

 

2,729,737

 

 

 

1,966,964

 

Stock Compensation

 

 

744,506

 

 

 

629,447

 

Contingent Consideration

 

 

713,259

 

 

 

599,343

 

Other Accrued Expenses

 

 

—

 

 

 

128,522

 

 

 

 

 

 

 

 

 

 

Deferred tax assets

 

 

22,919,057

 

 

 

18,441,763

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Property, plant and equipment, primarily due to differences in depreciation

 

 

(127,140

)

 

 

(26,307

)

Other Accrued Expenses

 

 

(11,926

)

 

 

—

 

Intangible Assets

 

 

(1,302,220

)

 

 

(1,302,220

)

 

 

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

(1,441,286

)

 

 

(1,328,527

)

 

 

 

 

 

 

 

 

 

Valuation allowance

 

 

(21,794,504

)

 

 

(18,415,456

)

 

 

 

 

 

 

 

 

 

Net deferred tax assets (liabilities)

 

$

(316,733

)

 

$

(1,302,220

)