INCOME TAXES

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 10: INCOME TAXES

The components of deferred taxes are as follows:

		December 31, 2018				December 31, 2017
Deferred income tax assets:
Operating loss carryforwards		$	(701,702	)		$	(228,702	)
Less: Valuation allowance			701,702				228,702
		$	—			$	—

The components of income tax benefit for the periods ended are as follows:

			December 31, 2018				December 31, 2017

Current tax benefit		$	(473,000	)		$	(102,260	)
Change in valuation allowance			473,000				102,260
Income tax provision		$	—			$	—

At December 31, 2018 and 2017, a valuation allowance was established for the entire amount of the net deferred tax asset as the realization of the deferred tax asset is dependent on future taxable income. The Company calculates the valuation allowance using a Federal Income rate of 21% and a State Income rate of 3.6%.

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the US federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings.

As of December 31, 2018, the Company has not completed the accounting for the tax effects of enactment of the Act; however, as described below, it has made a reasonable estimate of the effects on existing deferred tax balances. These amounts are provisional and subject to change.

The Act also includes a requirement to pay a one-time transition tax on the cumulative value of earnings and profits that were previously not repatriated for U.S. income tax purposes. The Company has not made sufficient progress on the transition tax analysis to reasonably estimate the effects, and therefore, has not recorded provisional amounts. However, based on analysis to date the one-time transition tax is not expected to be material. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations.

At December 31, 2017, the Company had net operating loss carryforwards for tax purposes of $929,682 which will expire beginning in 2033, if not previously utilized.

The Company is subject to taxation in the United States and various state jurisdictions. As of December 31, 2018, the Company’s tax years for 2014, 2015, 2016 and 2017 are subject to examination by the tax authorities. With few exceptions, as of December 31, 2018, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before 2013.