Income taxes (Tables)

Income taxes (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016 is as follows:



		2017			2016
Pre-tax book income (loss)		$	97,697		$	(1,161,245	)
Expected tax at 34%		33,217			(394,823		)

Permanent differences:
	Machinery & equipment	10,888			5,459
	Stock compensation	(179,084		)	—
	Non-deductible interest	10,788			—
	Other	26			754

State taxes:
	Current	—			—
	Deferred	(24,960		)	(96,754		)

Other items:
	Federal research and development credits	(33,406		)	(15,996		)
	Change in valuation allowance	277,000			96,754
	Deferred tax past year true-up's	191,355			(8,584		)
	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		)	—
Unbenefitted operating losses		—			413,190
Income tax provision		$	—		$	—

Schedule of Deferred Tax Assets

The components of net deferred tax assets recognized in the accompanying consolidated balance sheets at December 31, 2017 and 2016 are as follows:



	2017			2016
Net operating loss carryforwards	$	7,429,000		$	6,885,000
R&D and ITC credit carryforwards	203,000			145,000
Accrued expenses and other	879,000			1,740,000
Accounts receivable	6,000			11,000
Inventory	73,000			208,000
Property, plant and equipment	801,000			125,000
Deferred tax assets	9,391,000			9,114,000
Valuation allowance	(9,391,000		)	(9,114,000		)
Deferred tax assets, net	$	—		$	—

Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)