Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.8.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes

The provision for income taxes consists of the following for the year ended December 31, 2016:

 

    Years Ended December 31,  
    2017     2016  
Current                
Federal   $ —     $ (2,242,984 )
State     —       (573,700 )
Deferred                
Federal     —       (35,913 )
State     —       (8,450 )
Provision for income tax expense   $ —     $ (2,861,047 )
Schedule of effective income tax rate

The reconciliation of the effective income tax rate to the federal statutory rate is as follows:

 

    Years Ended December 31,  
    2017     2016  
Federal income tax rate     (34 )%     34 %
State tax, net of federal benefit     (8 )%     8 %
Change in accrued liabilities     (9 )%     6 %
Change in valuation allowances     33; %     (9 )%
Effective income tax rate     — %     39 %
Schedule of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities at December 31, 2017 and 2016 are as follows: 

 

    December 31,
2017		     December 31,
2016		  
Deferred tax assets:                
Inventory reserves   $ 221,053     $ 105,000  
Accrued liabilities     138,160       209,084  
Deferred tax liability                
Accumulated depreciation     (145,935 )     (153,447 )
Net deferred tax assets     213,278       160,637  
Valuation allowance     (213,278 )     —  
Net deferred tax assets, net of valuation allowances   $ —     $ 160,637