Annual report pursuant to Section 13 and 15(d)

TAX EXPENSE (Tables)

v3.19.1
TAX EXPENSE (Tables)
12 Months Ended
Dec. 31, 2018
Tax Expense Tables  
Income taxes expense benefit

The (benefit) expense for income taxes consists of the following: 

 

    Year Ended December 31,  
    2018     2017  
Current:   $ -     $ -  
Federal     -       (343,943 )
State     -       (3,512 )
      -       (347,455 )
Deferred:                
Federal     -       -  
State     -       -  
      -       -  
                 
Total (Benefit) Expense for Income Taxes   $ -     $ (347,455 )
Schedule of effective income tax rate reconciliation

The reconciliation between the Company’s effective tax rate and the statutory tax rate is as follows:

 

    Year Ended December 31,  
    2018     2017  
Expected Income Tax Benefit at Statutory Tax Rate, Net   $ (6,847,005 )   $ (13,456,000 )
Non-Deductible Items     -       -  
Warrants Expense     -       871,000  
Derivatives Expense     -       4,104,000  
Amortization     641,747       -  
Amortization of Debt Discount     335,878       -  
IRC 280E Adjustment     1,565,957       -  
Net Operating Losses     -       -  
Impairment of Property and Intangibles     -       365,000  
Other     68,792       1,033,545  
Change in Valuation Allowance     4,234,631       6,735,000  
                 
Reported Income (Benefit) Tax Expense   $ -     $ (347,455 )
Deferred tax assets and liabilities

The components of deferred income tax assets and (liabilities) are as follows:

 

    Year Ended December 31,  
    2018       2017  
Deferred Income Tax Assets:              
Options expense   $ 1,018,000     $ -  
Allowance for Doubtful Accounts     33,000       -  
Net Operating Losses     13,409,000       8,023,000  
                 
      14,460,000       8,023,000  
Deferred Income Tax Liabilities:                
Depreciation     (829,000 )     (850,000 )
                 
Total     13,631,000       7,173,000  
                 
Valuation Allowance     (13,631,000 )     (7,173,000 )
                 
Net Deferred Tax   $ -     $ -