| 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, 2019 and 2018 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
Pre-tax book income (loss) |
|
(4,779,179 |
) |
|
(5,768,378 |
) |
Expected tax at 21% |
|
(1,008,353 |
) |
|
(1,211,359 |
) |
|
|
|
|
|
|
Permanent differences: |
|
|
|
|
|
Machinery & equipment |
|
3,728 |
|
|
4,658 |
|
|
Mark to market |
|
4,133 |
|
|
24,798 |
|
|
Goodwill impairment |
|
775,572 |
|
|
922,024 |
|
|
Intangible Amortization |
|
(105,573 |
) |
|
(180,780 |
) |
|
Stock compensation |
|
— |
|
|
— |
|
|
Non-deductible interest |
|
— |
|
|
— |
|
|
Other |
|
(3,044 |
) |
|
876 |
|
|
|
|
|
|
|
State taxes: |
|
|
|
|
|
Current |
|
15,194 |
|
|
32,748 |
|
|
Deferred |
|
(110,517 |
) |
|
(120,477 |
) |
|
|
|
|
|
|
Other items: |
|
|
|
|
|
Federal research and development credits |
|
(48,153 |
) |
|
(35,550 |
) |
|
Change in valuation allowance |
|
1,479,000 |
|
|
(153,000 |
) |
|
Deferred tax past year true-up's |
|
(30,981 |
) |
|
(99,348 |
) |
|
True up - ADG NOL IRC Sec 382 limitation |
|
— |
|
|
817,198 |
|
|
Other |
|
(955,812 |
) |
|
30,960 |
|
Income tax provision |
|
$ |
15,194 |
|
|
$ |
32,748 |
|
|
| Schedule of Deferred Tax Assets |
The components of net deferred tax assets recognized in the accompanying consolidated balance sheets at December 31, 2019 and 2018 are as follows:
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|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
Net operating loss carryforwards |
$ |
8,299,000 |
|
|
$ |
7,206,000 |
|
R&D and ITC credit carryforwards |
317,000 |
|
|
244,000 |
|
Accrued expenses and other |
1,224,000 |
|
|
1,140,000 |
|
Accounts receivable |
20,000 |
|
|
7,000 |
|
Inventory |
78,000 |
|
|
73,000 |
|
Property, plant and equipment |
779,000 |
|
|
568,000 |
|
Deferred tax assets |
10,717,000 |
|
|
9,238,000 |
|
Valuation allowance |
(10,717,000 |
) |
|
(9,238,000 |
) |
Deferred tax assets, net |
$ |
— |
|
|
$ |
— |
|
|