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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Taxes |
Income Taxes | Note 7 – Income Taxes The provision for income taxes consists of the following expenses (benefits):
|  | For the Years Ended
|  | December 31,
|  | 2019 |  | 2018
Deferred tax provision (benefit): |  |  |  |  |  |
Federal |  | $ | (4,999,920) |  | $ | (3,516,722)
State and local |  |  | 68,762 |  |  | (47,238)
|  |  | (4,931,158) |  |  | (3,563,960)
Change in valuation allowance |  |  | 4,931,158 |  |  | 3,563,960
Provision for income taxes |  | $ | — |  | $ | —
The provision for income taxes differs from the United States Federal statutory rate as follows:
|  | For the Years Ended |
|  | December 31, |
|  | 2019 |  | 2018 |
Federal statutory rate |  | 21.0 | % | 21.0 | %
State tax rate, net of federal benefit |  | 0.1 | % | 0.3 | %
Permanent differences |  | (0.2) | % | (0.8) | %
Research & development tax credits |  | 3.0 | % | 2.8 | %
Prior period adjustments and other |  | (0.6) | % | (2.6) | %
Change in valuation allowance |  | (23.3) | % | (20.7) | %
Effective income tax rate |  | 0.0 | % | 0.0 | %
Deferred tax assets consist of the following:
|  | As of December 31,
|  | 2019 |  | 2018
Net operating loss carryforwards |  | $ | 9,479,512 |  | $ | 5,453,854
Stock-based compensation expense |  |  | 943,370 |  |  | 616,207
Property and equipment |  |  | (14,030) |  |  | 2,486
Intangibles |  |  | 328,773 |  |  | 310,230
Research and development tax credits |  |  | 1,584,753 |  |  | 1,008,443
Deferred tax assets |  |  | 12,322,378 |  |  | 7,391,220
Valuation allowance |  |  | (12,322,378) |  |  | (7,391,220)
Deferred tax assets, net |  | $ | — |  | $ | —
As of December 31, 2019, the Company had approximately $45,000,000 of domestic Federal net operating loss carryforwards ("NOLs") that may be available to offset future Federal taxable income. Approximately $10,800,000 of those NOLs will expire during the years ranging from 2034 to 2037. The remaining NOLs of approximately $34,200,000 have no expiration dates. Internal Revenue Code Section 382 limits the utilization of approximately $35,000,000 of those NOLs to approximately $918,000 on an annual basis as a result of ownership changes that occurred through July 15, 2019. As of December 31, 2019, the Company had minimal state net operating loss carryforwards that may be available to offset future state taxable income as it conducted most of its operations in Nevada which does not tax corporate income. The Company has assessed the likelihood that deferred tax assets will be realized in accordance with the provisions of ASC 740 Income Taxes ("ASC 740"). ASC 740 requires that such a review considers all available positive and negative evidence, including the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. ASC 740 requires that a valuation allowance be established when it is “more likely than not” that all, or a portion of, deferred tax assets will not be realized. After the performance of such reviews as of December 31, 2019 and 2018, management believes that uncertainty exists with respect to future realization of its deferred tax assets and has, therefore, established a full valuation allowance as of those dates. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s consolidated financial statements as of December 31, 2019 and 2018. The Company does not expect any significant changes in its unrecognized tax benefits within twelve months of the reporting date. No tax audits were commenced or were in process during the years ended December 31, 2019 and 2018. No tax related interest or penalties were incurred during the years ended December 31, 2019 and 2018. The Company's State of California income tax returns beginning with the year ended December 31, 2015 remain subject to examination. The Company's Federal and New York State and City income tax returns beginning with the year ended December 31, 2016 remain subject to examination.

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- 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
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