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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes |
6. | Income Taxes
The Company's provision for income taxes is comprised of the following:
|  | December 31, |
|  | 2019 |  |  | 2018 |
Current |  |  |  |  |  |
Federal |  | $ | (151,597 | ) |  | $ | - |
State and local |  |  | 10,004 |  |  |  | 3,001 |
Total current |  |  | (141,593 | ) |  |  | 3,001 |
Deferred |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
State and local |  |  | - |  |  |  | - |
Change in valuation allowance |  |  | - |  |  |  | - |
Total deferred |  |  | - |  |  |  | - |
Total provision (benefit) |  | $ | (141,593 | ) |  | $ | 3,001 |
In 2019, as a result of the gain recorded in discontinued operations related to the sale of the Dating Services Business, the Company recorded an income tax benefit of $159,265 from continuing operations pursuant to the intra-period allocation guidance in ASC 740-20-45-7 which was partially offset by an income tax provision of $17,672 for state and local taxes. The Company also recorded an income tax expense of $159,265 allocated to discontinued operations. In 2018, the Company recorded an income tax provision of $3,001 for state and local taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows:
|  | December 31, |
|  | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |
Net operating losses |  | $ | 4,265,150 |  |  | $ | 4,529,410 |
Share-based compensation |  |  | 989,763 |  |  |  | 1,061,421 |
Amortization of intangible assets |  |  | 1,056,162 |  |  |  | 767,591 |
Rent |  |  | 168,036 |  |  |  | - |
Tax credits |  |  | 62,969 |  |  |  | 62,969 |
Other |  |  | 72,032 |  |  |  | 10,528 |
Subtotal |  |  | 6,614,116 |  |  |  | 6,431,919 |
Less: valuation allowance: |  |  | (6,349,900 | ) |  |  | (6,339,578 | )
Total deferred tax assets |  |  | 264,216 |  |  |  | 92,341 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Intangibles |  |  | - |  |  |  | - |
Property and equipment |  |  | (264,216 | ) |  |  | (92,341 | )
Other |  |  | - |  |  |  | - |
Total deferred tax liabilities |  |  | (264,216 | ) |  |  | (92,341 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |
In assessing the Company's ability to recover its deferred tax assets, the Company evaluated whether it is more likely than not that some portion or the entire deferred tax asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible and/or net operating losses can be utilized. The Company considered all positive and negative evidence when determining the amount of the net deferred tax assets that are more likely than not to be realized. This evidence includes, but is not limited to, historical earnings, scheduled reversal of taxable temporary differences, tax planning strategies and projected future taxable income. Based on these factors including cumulative losses in recent years, the Company determined that its deferred tax assets are not realizable on a more-likely-than-not basis and has recorded a valuation allowance against its net deferred tax assets. The Company's valuation allowance increased by $10,322 during 2019. The Company will continue to evaluate its deferred tax assets to determine whether any changes in circumstances could affect the realization of their future benefit. If it is determined in future periods that portions of the Company's deferred income tax assets satisfy the realization standards, the valuation allowance will be reduced accordingly. The Company's effective tax rate differs from the U.S. federal statutory income tax rate of 21% for 2019 and 2018 as follows:
|  | 2019 |  |  | 2018 |
Income tax (expense) benefit at federal statutory rate |  |  | 21.0 | % |  |  | 21.0 | %
Permanent differences |  |  | (6.7 | )% |  |  | (0.7 | )%
State and local taxes |  |  | (0.2 | )% |  |  | (2.4 | )%
Valuation allowance |  |  | (0.1 | )% |  |  | (18.2 | )%
Deferred tax adjustment |  |  | (12.6 | )% |  |  | 0.0 | %
Other |  |  | 0.1 | % |  |  | 0.2 | %
Effective tax rate |  |  | 1.6 | % |  |  | (0.1 | )%
The Company applies the applicable authoritative guidance which prescribes a comprehensive model for the manner in which a company should recognize, measure, present and disclose in its financial statements all material uncertain tax positions that the Company has taken or expects to take on a tax return. As of December 31, 2019, the Company has no uncertain tax positions. As such, there are no uncertain tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within twelve months from December 31, 2019. The Company files a federal income tax return and income tax returns in various state tax jurisdictions. The open tax years for the federal income tax return is 2016 through 2019. The state income tax returns have varying statutes of limitations. The open tax years relating to any of the Company's federal and state net operating losses begin in 2009.

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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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