XML 16 R18.htm IDEA: XBRL DOCUMENT
v3.20.1

Note L - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE L — INCOME TAXES Due to Milestone Scientific's history of operating losses, a full valuation allowances have been provided for all of Milestone Scientific's deferred tax assets. At December 31, 2019 and 2018, no recognition was given to the utilization of the remaining net operating loss carry forwards in each of these periods. Deferred tax attributes resulting from differences between financial accounting amounts and tax bases of assets and liabilities at December 31, 2019 and 2018 are as follows:
|  |  |  | 2019 |  |  | 2018 |
Allowance for doubtful accounts |  |  |  | $ | 2,000 |  |  | $ | 3,000 |
Warranty reserve |  |  |  |  | 5,000 |  |  |  | 29,000 |
Impaired Assets |  |  |  |  | - |  |  |  | 435,000 |
Inventory Reserve |  |  |  |  | 178,000 |  |  |  | 551,000 |
Deferred officers' compensation |  |  |  |  | 820,000 |  |  |  | 715,000 |
Depreciation and Amortization |  |  |  |  | (103,000 | ) |  |  | 345,000 |
Net operating loss carryforward |  |  |  |  | 16,504,000 |  |  |  | 16,500,000 |
Tax Credit |  |  |  |  | 384,000 |  |  |  | - |
Other |  |  |  |  | (28,000 | ) |  |  | - |
Subtotal |  |  |  |  | 17,762,000 |  |  |  | 18,578,000 |
Valuation allowance |  |  |  |  | (17,762,000 | ) |  |  | (18,578,000 | )
Non-current deferred tax asset |  |  |  | $ | - |  |  | $ | - |
As of December 31, 2019, federal net operating loss carry-forwards are approximately $59,000,000. As of December 31, 2018, Milestone Scientific has federal net operating loss carry-forwards of approximately $65,300,000, which is comprised solely of losses attributable Milestone Scientific and its subsidiaries. Net operating losses generated before December 31, 2017 will be available to offset future income, if any, through December 2037. Net operating losses generated in 2018 or after can be carried forward indefinitely. As of December 31, 2019, state net operating losses were approximately 56,700,000. As of December 31, 2019 and 2018, Milestone, Scientific has state net operating loss carry-forwards of approximately $39,400,000 and $30,800,000, respectively. Net operating losses will be available to offset future taxable income, if any, through December 2039. The utilization of Milestone Scientific's net operating losses may be subject to a substantial limitation due to the "change of ownership provisions" under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating loss carry forwards before their utilization. Milestone Scientific has established a 100% valuation allowance for all its deferred tax assets due to uncertainty as to their future realization. As of December 31, 2019, and 2018, state tax liability was approximately $18,000 and $24,000 respectively. Such expense was recognized in the accompanying consolidated financial statements. Accounting for uncertainties in income taxes prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, disclosure and transition. At December 31, 2019 and 2018, we had no uncertain tax positions that required recognition in the consolidated financial statements. Milestone Scientific's policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Statements of Operations. No interest and penalties are present for periods open. Tax returns for the 2016, 2017, and 2018 years are subject to audit by federal and state jurisdictions. A reconciliation of the statutory tax rates for the years ended December 31, is as follows:
|  | 2019 |  |  | 2018 |
Statutory rate |  |  | 21 | % |  |  | 21 | %
State income tax-all states |  |  | 4 | % |  |  | 7 | %
Change in fair value of derivative |  |  | -11 | % |  |  | 0 | %
NOL Expiration |  |  | -22 | % |  |  | 0 | %
Other |  |  | -3 | % |  |  | 0 | %
Subtotal |  |  | -11 | % |  |  | 28 | %
Valuation allowance |  |  | 11 | % |  |  | -28 | %
Effective tax rate |  |  | 0 | % |  |  | 0 | %

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