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INCOME TAXES
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 11 – INCOME TAXES

 

For financial reporting purposes, (loss) income before taxes includes the following components:

 

   2020   2019   2018 
United States  $(183,524,137)  $(176,144,999)  $(132,617,160)
Total  $(183,524,137)  $(177,144,999)  $(132,617,160)

 

For the years ended December 31, 2020, 2019, and 2018, there was no provision for income taxes, current or deferred. At December 31, 2020, we had a federal net operating loss carry forward of approximately $761,701,546 available to offset future taxable income through 2038. Approximately $338,775,332 of the federal net operating loss carry forward can be carried forward for 20 years and will begin to expire in 2031. The remaining $422,926,214 can be carried forward indefinitely.

 

A reconciliation between taxes computed at the federal statutory rate and the consolidated effective tax rate is as follows:

 

   2020   2019   2018 
Federal statutory tax rate   21.0%   21.0%   21.0%
State tax rate, net of federal tax benefit   5.1%   4.0%   5.2%
Adjustment in valuation allowances   (27.0)%   (22.5)%   (31.2)%
Excess stock benefits   0.1%   0.2%   5.3%
Federal income tax rate change   0%   0%   -% 
Permanent and other differences   0.8%   (2.7)%   (0.3)%
Provision (benefit) for income taxes   —    —    — 

 

Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes.

 

The components of the net deferred income tax asset as of December 31, 2020, 2019, and 2018 are as follows:

 

   2020   2019   2018 
Deferred Income Tax Assets:               
Net operating losses  $195,008,131   $157,555,975   $126,419,113 
Share based compensation   17,251,900    13,913,568    11,640,464 
Interest expense limitation   12,991,716    5,389,129    1,173,614 
Other, net   4,818,935    3,662,037    1,658,573 
R&D credit   186,347    186,347    186,347 
Total deferred income tax asset   230,257,029    180,707,056    141,078,111 
Valuation allowance   (230,257,029)   (180,707,056)   (141,078,111)
Deferred income tax assets, net  $—   $—   $— 

 

We believe that it is more likely than not that we will not generate sufficient future taxable income to realize the tax benefits related to the deferred tax assets on our balance sheet and as such, a valuation allowance has been established against the deferred tax assets for the period ended December 31, 2020.

 

The change in valuation allowance was $49,549,973, $39,628,945, and $41,295,443 for the years ended December 31, 2020, 2019, and 2018, respectively.

 

Unrecognized Tax Benefits

 

As of December 31, 2020 and 2019, we have no unrecognized tax benefits.