| Reconciliation of Federal Statutory Income Tax Provision To Company's Actual Provision |
A reconciliation of the federal statutory income tax provision to the Company's actual provision for the years ended December 31, 2018 and 2017 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
2017 |
Pre-tax book income (loss) |
|
(5,768,378 |
) |
|
97,697 |
|
Expected tax at 21% and 34%, respectively |
|
(1,211,359 |
) |
|
33,217 |
|
|
|
|
|
|
|
Permanent differences: |
|
|
|
|
|
Machinery & equipment |
|
4,658 |
|
|
10,888 |
|
|
Mark to market |
|
24,798 |
|
|
— |
|
|
Goodwill impairment |
|
922,024 |
|
|
— |
|
|
Intangible Amortization |
|
(180,780 |
) |
|
— |
|
|
Stock compensation |
|
— |
|
|
(179,084 |
) |
|
Non-deductible interest |
|
— |
|
|
10,788 |
|
|
Other |
|
876 |
|
|
26 |
|
|
|
|
|
|
|
State taxes: |
|
|
|
|
|
Current |
|
32,748 |
|
|
— |
|
|
Deferred |
|
(120,477 |
) |
|
(24,960 |
) |
|
|
|
|
|
|
Other items: |
|
|
|
|
|
Federal research and development credits |
|
(35,550 |
) |
|
(33,406 |
) |
|
Change in valuation allowance |
|
(153,000 |
) |
|
277,000 |
|
|
Deferred tax past year true-up's |
|
(99,348 |
) |
|
191,355 |
|
|
ADGE deferred tax assets and liabilities at purchase |
|
— |
|
|
(3,702,013 |
) |
|
ADGE other post-closing adjustments |
|
— |
|
|
(1,330,665 |
) |
|
Change in statutory tax rate for deferred tax assets-Federal |
|
— |
|
|
4,914,329 |
|
|
Change in statutory tax rate for deferred tax assets-State |
|
— |
|
|
(167,475 |
) |
|
True up - ADG NOL IRC Sec 382 limitation |
|
817,198 |
|
|
— |
|
|
Other |
|
30,960 |
|
|
— |
|
Income tax provision |
|
$ |
32,748 |
|
|
$ |
— |
|
|
| Schedule of Deferred Tax Assets |
The components of net deferred tax assets recognized in the accompanying consolidated balance sheets at December 31, 2018 and 2017 are as follows:
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|
|
|
|
|
|
|
|
|
2018 |
|
2017 |
Net operating loss carryforwards |
$ |
7,206,000 |
|
|
$ |
7,429,000 |
|
R&D and ITC credit carryforwards |
244,000 |
|
|
203,000 |
|
Accrued expenses and other |
1,140,000 |
|
|
879,000 |
|
Accounts receivable |
7,000 |
|
|
6,000 |
|
Inventory |
73,000 |
|
|
73,000 |
|
Property, plant and equipment |
568,000 |
|
|
801,000 |
|
Deferred tax assets |
9,238,000 |
|
|
9,391,000 |
|
Valuation allowance |
(9,238,000 |
) |
|
(9,391,000 |
) |
Deferred tax assets, net |
$ |
— |
|
|
$ |
— |
|
|