XML 25 R16.htm IDEA: XBRL DOCUMENT
v3.20.1

Note 10 - Income Tax Benefit | 12 Months Ended
--- | ---
Dec. 31, 2019
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, |
|  | 2019 |  |  | 2018 |
Current tax benefit: |  |  |  |  |  |  |  |
Federal |  | $ | 513,201 |  |  | $ | 1,873,248 |
State |  |  | 161,781 |  |  |  | 683,290 |
Total |  |  | 674,982 |  |  |  | 2,556,538 |
Deferred tax benefit (expense): |  |  |  |  |  |  |  |
Federal |  |  | 1,470,099 |  |  |  | 29,152 |
State |  |  | 463,432 |  |  |  | 10,634 |
Total |  |  | 1,933,531 |  |  |  | 39,786 |
Total Income Tax Benefit Before Valuation Allowance |  |  | 2,608,513 |  |  |  | 2,596,324 |
Valuation allowance |  |  | (2,608,513 | ) |  |  | (2,596,324 | )
Total Income Tax Benefit |  | $ | - |  |  | $ | - |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforward |  | $ | 8,576,397 |  |  | $ | 5,967,884 |
Less valuation allowance |  |  | (6,642,866 | ) |  |  | (5,967,884 | )
Total Deferred Tax Assets |  |  | 1,933,531 |  |  |  | - |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Unrealized gains on securities |  |  | (1,732,696 | ) |  |  | - |
Other |  |  | (200,835 | ) |  |  | - |
Total Deferred Tax Liabilities |  |  | (1,933,531 | ) |  |  | - |
Net Deferred Tax Assets/Liabilities |  | $ | - |  |  | $ | - |
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%. At December 31, 2019, we have available tax operating loss carry forwards of approximately $26.4 million. This amount takes into consideration the reduction of $1.3 million that was the result of an IRS audit which concluded late summer of 2019. Of the $26.4 million, $9.0 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 2016 through 2019. The amount and ultimate realization of 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 continue to assess the impact of the 2018 private placement, our “at the market” offerings 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, 2019 , we had recorded a valuation allowance of $6,642,866 to fully offset the deferred tax asset. The change in the valuation allowance for the year ended December 31, 2019 was $674,982.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration