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Note 10 - Income Tax Benefit
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
NOTE
10.
INCOME TAX BENEFIT
 
The components of the income tax (provision) benefit for the years ended
December 31,
were as follows:
 
   
December 31,
   
2018
  
2017
                 
Current tax benefit:
  
 
 
 
  
 
 
 
Federal
   $
1,873,248
     $
1,851,821
  
State
    
683,290
      
392,695
  
                 
Total
    
2,556,538
      
2,244,516
  
                 
Deferred tax benefit (expense):
  
 
 
 
  
 
 
 
Federal
    
29,152
      
337,841
  
State
    
10,634
      
71,642
  
                 
Total
    
39,786
      
409,483
  
                 
Total Income Tax Benefit Before Valuation Allowance and Change in Tax Laws
    
2,596,324
      
2,653,999
  
Change in tax laws
    
-
      
(837,223
 )
Valuation allowance
    
(2,596,324
 )    
(1,816,776
 )
                 
Total Income Tax Benefit
   $
-
     $
-
  
                 
Deferred tax assets:
                
Net operating loss carryforward
   $
5,967,884
     $
3,371,560
  
Less valuation allowance
    
(5,967,884
 )    
(3,371,560
 )
                 
Total Deferred Tax Assets
   $
-
     $
-
  
 
The Tax Cuts Jobs Act was signed into law on
December 22, 2017,
and changed many aspects of U.S. corporate income taxation. Included in those changes was a reduction of the corporate income tax rate from
34%
to
21%.
The valuation allowance at
December 31, 2017
was adjusted to reflect the impact of the new tax law. We will continue to assess our provision for the income taxes as future guidance is issued but do
not
currently anticipate significant revision will be necessary.
 
At
December 31, 2018,
we have available tax operating loss carry forwards of approximately
$21.8
million, of which
$12.9
million arose in years beginning before
2018.
Tax operating loss carry forwards generated in years prior to
2018
may
be applied against future taxable income and expire in
2035
through
2037.
Tax operating loss carryovers arising in years after
2017
may
be carried forward indefinitely. Tax years open to examination by federal and state taxing authorities range from
2015
through
2018.
 
The amount and ultimate realization from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, our future earnings, and other future events, the effects of which cannot be determined. We are currently assessing the impact of the
2018
private placement, our “at the market” offering and other transactions to determine whether an “ownership change,” as defined in Section
382
of the Internal Revenue Code, has occurred and, if so, the limitations on our ability to utilize net operating losses, which we refer to as “NOLs” (See Note
12
). Additionally, it is possible that future transactions
may
cause us to undergo
one
or more ownership changes. Certain of these NOLs
may
also be at risk of limitation in the event of a future ownership change.
 
At
December 31, 2018,
we had recorded a valuation allowance of
$5,967,884
to fully offset the deferred tax asset. The change in the valuation allowance for the year ended
December 31, 2018
was
$2,596,324.