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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of components of the provision for income taxes

The provision for income taxes consists of the following:

 

Year ended December 31,  2018   2017 
Current:          
Federal  $3,104,000   $200,000 
State   73,000    266,000 
           
Deferred:          
Federal   1,286,000    2,244,000 
   $4,463,000   $2,710,000 

 
Schedule of difference between the income tax provision computed at the federal statutory rate and the actual tax provision

The difference between the income tax provision computed at the federal statutory rate and the actual tax provision is accounted for as follows:

 

December 31,  2018   2017 
Taxes computed at the federal statutory rate  $1,381,000   $2,882,000 
State income tax, net   58,000    176,000 
Prior year true-up   18,000    2,000 
Research and development tax credit   (164,000)   (235,000)
Change in federal statutory rate   —    (207,000)
Uncertain tax position   3,128,000    — 
Permanent differences   42,000    92,000 
Provision for income taxes  $4,463,000   $2,710,000 

 
Schedule of components of deferred income tax assets and liabilities

The components of deferred income tax assets and liabilities are as follows:

 

Deferred Tax Assets:  2018   2017 
Allowance for doubtful accounts  $60,000   $32,000 
Credit carryforwards   1,255,000    1,986,000 
Deferred rent   117,000    126,000 
Stock options   12,000    102,000 
Restricted stock   88,000    90,000 
Other   8,000    1,000 
Interest on uncertain tax position   654,000    — 
Net operating loss carryforward   863,000    750,000 
Deferred Tax Assets   3,057,000    3,087,000 
           
Deferred Tax Liabilities:          
Prepaid expenses   159,000    141,000 
Revenue recognition   3,137,000    1,036,000 
Property and equipment   404,000    276,000 
State taxes   —    67,000 
Deferred tax liabilities   3,700,000    1,520,000 
Net Deferred Tax Assets (Liabilities)  $(643,000)  $1,567,000 

 
Schedule of changes to uncertain tax positions

The following table indicates the changes to the Company’s uncertain tax position for the years ended December 31, 2018 and 2017 including interest and penalties:

 

   Years Ended December 31, 
   2018   2017 
Balance, beginning of year  $—   $— 
Additions   3,128,000    — 
Reductions   —    — 
Balance, end of year  $3,128,000   $—