Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.19.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes

During 2018, the Company had no current tax liabilities, however, the Company was able to recover $215,000 of taxes previously paid from utilization of its net operating loss carry forwards. The Company has no provision for income taxes during the year ended December 31, 2017.

 

    Years Ended December 31,  
    2018     2017  
Current                
Federal   $ —     $ —  
State     —       —  
Deferred                
Federal     195,000       —  
State     20,000       —  
Income tax benefit   $ 215,000     $ —  
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,  
    2018     2017  
Federal income tax rate     (21 )%     (34 )%
State tax, net of federal benefit     (8 )%     (8 )%
Change in accrued liabilities     2 %     9 %
Change in valuation allowances     27 %     33 %
Effective income tax rate              — %                — %
Schedule of deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities at December 31, 2018 and 2017 are as follows:

 

    December 31,
2018 		    December 31,
2017 		 
Deferred tax assets:                
Inventory reserves   $ 210,283     $ 221,053  
Accrued liabilities     120,251       138,160  
Net operating loss carryover     326,515       —  
Deferred tax liability:                
Accumulated depreciation     (86,562 )     (145,935 )
                 
Net deferred tax assets     570,487       213,278  
Valuation allowance     (570,487 )     (213,278 )
Net deferred tax assets, net of valuation allowances   $ —     $ —