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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the Company's net deferred tax assets at December 31 are as follows:
|  | 2019 |  | 2018
Deferred Tax Assets |  |  |  |
Net operating loss and tax credits |  | $ | 16,964,685 |  |  | $ | 16,410,403 |
Property and equipment and intangibles |  | 227,072 |  |  | 236,318 |
Allowance for accounts receivable |  | 257,564 |  |  | 251,068 |
Reserve for expired product |  | 469,466 |  |  | 558,484 |
Inventory |  | 35,227 |  |  | 193,150 |
Deferred charges |  | 845,765 |  |  | 910,577 |
Cumulative compensation costs incurred on deductible equity awards |  | 1,047,149 |  |  | 884,049 |
Total deferred tax assets |  | 19,846,928 |  |  | 19,444,049 |
Deferred Tax Liabilities |  |  |  |
Intangible assets |  | (1,313,965) |  |  | (1,974,787) |
Net deferred tax assets, before valuation allowance |  | 18,532,963 |  |  | 17,469,262 |
Less: deferred tax asset valuation allowance |  | (18,511,161) |  |  | (17,382,052) |
Net deferred tax assets |  | $ | 21,802 |  |  | $ | 87,210 |
The following table summarizes the amount and year of expiration of the Company's federal and state net operating loss carryforwards as of December 31, 2019:
Years of expiration |  | Federal |  | State
2020 |  | $ | — |  |  | $ | 13,115 |
2021 - 2029 |  | — |  |  | 49,392,824 |
2030 |  | 44,153,819 |  |  | 461,280 |
2031 - 2039 |  | 7,534,351 |  |  | 9,947,070 |
Indefinite Period |  | 5,493,258 |  |  | 383,869 |
Total federal and state net operating loss carryforwards |  | $ | 57,181,428 |  |  | $ | 60,198,158 |
Income tax (expense) benefit includes the following components for the years ended December 31:
|  | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |  |
Federal |  | $ | 65,408 |  |  | $ | — |  |  | $ | — |
State and other |  | 79,316 |  |  | (16,636) |  |  | (59,243) |
Total current income tax (expense) benefit |  | 144,724 |  |  | (16,636) |  |  | (59,243) |
Deferred: |  |  |  |  |  |
Federal |  | (65,408) |  |  | — |  |  | (3,682,772) |
State |  | — |  |  | — |  |  | (432,874) |
Total deferred income tax (expense) benefit |  | (65,408) |  |  | — |  |  | (4,115,646) |
Total income tax (expense) benefit |  | $ | 79,316 |  |  | $ | (16,636) |  |  | $ | (4,174,889) |
The Company’s effective income tax rate for 2019, 2018 and 2017 reconciles with the federal statutory tax rate as follows:
|  | 2019 |  | 2018 |  | 2017
Federal tax expense at statutory rate |  | 21 | % |  | 21 | % |  | 34 | %
State income tax expense (net of federal income tax benefit) |  | 4 | % |  | 4 | % |  | 4 | %
Permanent differences associated with general business credits |  | 7 | % |  | 1 | % |  | 1 | %
Change in valuation allowance |  | (31) | % |  | (25) | % |  | (148) | %
Change in tax rate |  | — | % |  | — | % |  | 2 | %
Other permanent differences |  | 1 | % |  | (1) | % |  | 1 | %
Other |  | — | % |  | — | % |  | (2) | %
Net income tax expense |  | 2 | % |  | — | % |  | (108) | %
In 2017, the Company determined that it was not more likely than not that its net deferred tax assets would be realized. As such, the Company’s income tax provision for the year ended December 31, 2017 reflected a full valuation allowance against net deferred tax assets with the exception of the deferred tax asset for alternative minimum tax (“AMT”) credit carryforwards discussed further below. The Company’s position is unchanged as of both December 31, 2018 and December 31, 2019. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“the Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate to 21%; (2) eliminating the corporate alternative minimum tax (“AMT”) and changing how AMT credits can be realized; (3) capital expensing; and (4) creating new limitations on deductible interest expense and executive compensation. In connection with our analysis of the impact of the Tax Act, we recorded a net tax benefit of $0.1 million in the period ended December 31, 2017. This net tax benefit consisted entirely of the release of the valuation allowance against AMT credits that will be realizable under the Tax Act in future periods. The Company expects it will continue to pay minimal taxes in future periods through the continued utilization of net operating loss carryforwards, as it is able to achieve taxable income through its operations. The Company is no longer subject to U.S. federal tax examinations for tax years before 2016, and with few exceptions, the Company is not subject to examination by state tax authorities for tax years which ended before 2016. Loss carryforwards and credit carryforwards generated or utilized in years earlier than 2016 remain subject to examination and adjustment. During 2012, the 2009 federal tax return was examined by the Internal Revenue Service with no significant findings or adjustments. The Company has no unrecognized tax benefits in 2019, 2018 and 2017.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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