XML 87 R15.htm IDEA: XBRL DOCUMENT
v3.20.1

10. INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
INCOME TAXES | The Company accounts for income taxes in accordance with ASC Topic No. 740, “Income Taxes.” This standard requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carry forwards. After applying the provisions of Section 382 of the Internal Revenue Code, the unexpired net operating loss carry forward at December 31, 2019 is approximately $8,934,000, with a portion expiring every year from 2020 through the 2038 tax year if not used. As a limited liability company in 2018, the Successor (Cellerate, LLC) was taxed as a partnership for federal income tax purposes and therefore had no federal tax asset or liability as of December 31, 2018. The non-current deferred tax asset is summarized below:
|  | 2019 Successor |  |  | 2018 Successor |
Net operating loss carry forwards, (21% as of December 31, 2019) |  | $ | 1,876,114 |  |  | $ | - |
Valuation allowance |  |  | (1,876,114 | ) |  |  | - |
Net non-current deferred tax asset |  | $ | - |  |  | $ | - |
A 100% valuation allowance has been provided for all deferred tax assets, as the ability of the Company to generate sufficient taxable income in the future is uncertain. Reconciliations of the expected federal income tax benefit based on the statutory income tax rate of 21% to the actual benefit for the years ended December 31, 2019 and 2018 are listed below. As a limited liability company in 2018, the Successor (Cellerate, LLC) was taxed as a partnership, therefore, no reconciliation of federal income tax benefit to actual benefit is presented for 2018.
|  | 2019 Successor |  |  | 2018 Successor |
Expected federal income tax benefit |  | $ | 605,767 |  |  | $ | - |
Goodwill amortization |  |  | 65,957 |  |  |  | - |
Change in valuation allowance |  |  | (294,050 | ) |  |  | - |
NOL carryover reduced by expiration |  |  | (302,134 | ) |  |  | - |
Pass through entity income allocation |  |  | (94,151 | ) |  |  | - |
Reserve for bad debt |  |  | (29,741 | ) |  |  | - |
Stock-based compensation |  |  | 48,352 |  |  |  | - |
Income tax expense (benefit) |  | $ | - |  |  | $ | - |
All tax years starting with 2016 are open for examination.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
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