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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
INCOME TAXES | 10. INCOME TAXES: Reconciliation of the benefit for income taxes from continuing operations recorded in the consolidated statements of operations with the amounts computed at the statutory federal tax rates for each year:
|  | 2019 |  |  | 2018 |
Federal tax expense (benefit) at statutory rate |  | $ | 167,000 |  |  | $ | (2,080,000 | )
State tax expense (benefit), net of federal tax |  |  | 65,000 |  |  |  | (207,000 | )
Permanent differences |  |  | 92,000 |  |  |  | 66,000 |
Change in statutory rate |  |  | (197,000 | ) |  |  | 7,000 |
Change in valuation allowance |  |  | (10,000 | ) |  |  | 2,545,000 |
Other |  |  | 99,000 |  |  |  | (331,000 |
Expense for income taxes |  | $ | 216,000 |  |  | $ | - |
Tax affected components of deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 were as follows:
|  | 2019 |  |  | 2018 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Equity based compensation |  | $ | 240,000 |  |  | $ | 177,000 |
Allowance for doubtful accounts |  |  | 2,478,000 |  |  |  | 870,000 |
Fixed assets |  |  | (6,476,000 | ) |  |  | (7,034,000 | )
Lease impairment |  |  | 553,000 |  |  |  | 507,000 |
Deferred rent |  |  | - |  |  |  | 1,000 |
Lease Liability |  |  | 520,000 |  |  |  | - |
Right of use asset |  |  | (466,000 | ) |  |  |  |
Accrued expenses |  |  | - |  |  |  | 12,000 |
Interest expense carryforward |  |  | - |  |  |  | 88,000 |
Tax credit carryforward |  |  | 32,000 |  |  |  | 32,000 |
Federal loss carry-forwards |  |  | 14,047,000 |  |  |  | 15,823,000 |
State loss carry forward |  |  | 353,000 |  |  |  | 816,000 |
Gross deferred tax assets |  |  | 11,281,000 |  |  |  | 11,292,000 |
Valuation allowance |  |  | (11,281,000 | ) |  |  | (11,292,000 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |
Based on consideration of the available evidence including historical losses a valuation allowance has been recognized to offset certain deferred tax assets, as management was unable to conclude that realization of deferred tax assets were more likely than not. As of December 31, 2019, the Company has federal net operating loss carryforwards of approximately $66,900,000 and state net operating loss carryforwards of approximately $6,000,000 available to offset future taxable income. Federal loss carryforwards incurred prior to January 1, 2018, expire from 2024 to 2037. Federal loss carryforwards incurred after January 1, 2018 do not expire. State loss carryforwards expire from 2024 to 2039. Federal and state loss carryforwards are subject to an annual limitation on utilization under Section 382 of the Internal Revenue Code. Section 382 of the Internal Revenue Code imposes a limitation on a corporation's ability to utilize net operating loss carryforwards ("NOLs") if it experiences an "ownership change." In general, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. If such a change were to occur, certain NOLs available to be used could be disallowed and an annual limitation on utilization of other NOLs would occur. The components of income tax expense (benefits) for the years ended December 31, 2019 and 2018 were as follows:
|  | 2019 |  |  | 2018 |
Current Income Tax: |  |  |  |  |  |
Federal |  | $ | - |  |  |  | - |
State |  |  | 216,400 |  |  |  | - |
Deferred Income Tax: |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
Sate |  |  | - |  |  |  | - |
|  | $ | 216,400 |  |  | $ | - |
The Company's effective tax rate for the year ended December 31, 2019 and 2018 differs from the statutory rate of 21% primarily due to a valuation allowance applied against the company's net deferred tax assets. State taxes and permanent differences also impacted the effective tax rate. The Company accrued a $216,400 current state income tax expense for the year ended December 31, 2019 for certain states in which taxable income exceeded available net operating loss carryforwards. The Company files tax returns in the U.S. federal jurisdiction and various states. At December 31, 2019, federal tax returns remained open for Internal Revenue Service review for tax years after 2016, while state tax returns remain open for review by state taxing authorities for tax years after 2015. The IRS completed an examination of the Company's 2016 tax return during 2018, resulting in a reduction to the net operating loss carryforward of approximately $50,000. During 2019, the Company was notified that its 2017 federal income tax return was selected for examination, and that exam remains open as of December 31, 2019. There were no other federal or state income tax audits being conducted as of December 31, 2019. The Company completed its analysis and review of all tax positions taken through December 31, 2019 and does not believe that there are any unrecognized tax benefits related to tax positions taken on its income tax returns.

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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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