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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Note 11. Income Taxes The Company accounts for its deferred tax assets and liabilities, including excess tax benefits of share-based payments, based on the tax ordering of deductions to be used on its tax returns. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities is as follows:
|  | December 31, 2019 |  |  | December 31, 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 762,000 |  |  | $ | 586,000 |
Tax Credits |  |  | 286,000 |  |  |  | - |
Deferred revenue |  |  | 58,000 |  |  |  | 989,000 |
Non-qualified stock option expense |  |  | 136,000 |  |  |  | 147,000 |
Investment in That’s Eatertainment (TEC), a related party |  |  | 51,000 |  |  |  | 39,000 |
Reserves, accruals and other |  |  | 231,000 |  |  |  | 160,000 |
Accumulated depreciation and amortization |  |  | 268,000 |  |  |  | 479,000 |
Total deferred tax assets |  |  | 1,792,000 |  |  |  | 2,400,000 |
Less: Valuation allowance |  |  | - |  |  |  | - |
Net deferred tax assets |  | $ | 1,792,000 |  |  | $ | 2,400,000 |
Internal Revenue Code Section 382 limits the ability to utilize net operating losses if a 50% change in ownership occurs over a three-year period. Such limitation of the net operating losses has not occurred. The Company believes it has approximately $1.3 million of federal net operating loss carry-forwards as of December 31, 2019, that are available to offset future taxable income that expire in various years through 2039. Significant components of the (provision) for income tax as follows:
|  | December 31, 2019 |  |  | December 31, 2018 |
Current |  | $ | (162,000 | ) |  | $ | - |
Deferred |  |  | 608,000 |  |  |  | 310,000 |
Change in valuation allowance |  |  | - |  |  |  | - |
Provision for income taxes |  | $ | 446,000 |  |  | $ | 310,000 |
The Company is subject to federal and state taxes. A reconciliation of the Company’s effective income tax rate to the federal statutory rate is as follows:
|  | December 31, 2019 |  |  | December 31, 2018 |
|  | $ |  |  | % |  |  | $ |  |  | % |
Federal income tax expense at the statutory rate |  | $ | 78,000 |  |  |  | 21.0 | % |  | $ | 237,000 |  |  |  | 21.0 | %
State income taxes, net of federal benefit |  |  | 20,000 |  |  |  | 5.4 | % |  |  | 62,000 |  |  |  | 5.5 | %
Permanent differences |  |  | 79,665 |  |  |  | 21.4 | % |  |  | 73,000 |  |  |  | 6.5 | %
Tax return true-ups and other |  |  | 268,335 |  |  |  | 72.2 | % |  |  | (62,000) |  |  |  | 5.5 | %
Change in federal income tax rates |  |  | - |  |  |  | 0.0 | % |  |  | - |  |  |  | 0.0 | %
Change in valuation allowance |  |  | - |  |  |  | 0.0 | % |  |  | - |  |  |  | 0.0 | %
Provision for income taxes |  | $ | 446,000 |  |  |  | 120.1 | % |  | $ | 310,000 |  |  |  | 27.5 | %
Provision for income taxes increased in 2019 from a true-up of the deferred tax asset and temporary timing differences in deferred revenue, reserves, depreciation and amortization, and net operating loss carryforward, offset by an adjustment for taxes prepaid and refunded from prior year tax over payments.

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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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