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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Tax | 10. Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. In determining the need for a valuation allowance, management reviews both positive and negative evidence pursuant to the requirements of ASC Topic 740, including current and historical results of operations, future income projections, and the overall prospects of the Company’s business. The income tax (benefit) provision for federal and state and local income taxes in the consolidated statements of operations consists of the following:
|  | Years Ended December 31,
($ in thousands) |  | 2019 |  | 2018
Current: |  |  |  |  |  |
Federal |  | $ | — |  | $ | —
State and local |  |  | 63 |  |  | 67
Total current |  |  | 63 |  |  | 67
Deferred: |  |  |  |  |  |
Federal |  |  | (354) |  |  | 1,404
State and local |  |  | (351) |  |  | 360
Total deferred |  |  | (705) |  |  | 1,764
Total (benefit) provision |  | $ | (642) |  | $ | 1,831
The reconciliation of income tax (benefit) provision computed at the federal and state and local statutory rates to the Company’s (loss) income before taxes is as follows:
|  | Years Ended December 31, |
|  | 2019 |  | 2018 |
U.S. statutory federal rate |  | 21.00 | % | 21.00 | %
State and local rate, net of federal tax |  | 7.40 |  | 14.16 |
Stock compensation |  | (7.01) |  | 18.25 |
Excess compensation deduction |  | (5.08) |  | 8.38 |
Foreign tax credits |  | 0.45 |  | (1.03) |
Federal true-ups |  | — |  | 0.41 |
Life insurance |  | (0.81) |  | 1.28 |
Other permanent differences |  | (0.16) |  | 0.25 |
Income tax (benefit) provision |  | 15.79 | % | 62.70 | %
The significant components of net deferred tax liabilities of the Company consist of the following:
|  | December 31,
($ in thousands) |  | 2019 |  | 2018
Deferred tax assets |  |  |  |  |  |
Stock-based compensation |  | $ | 2,774 |  | $ | 3,099
Federal, state and local net operating loss carryforwards |  |  | 1,207 |  |  | 566
Accrued compensation and other accrued expenses |  |  | 846 |  |  | 1,009
Allowance for doubtful accounts |  |  | 43 |  |  | 58
Basis difference arising from discounted note payable |  |  | 316 |  |  | 355
Foreign tax credit |  |  | 148 |  |  | 130
Charitable contribution carryover |  |  | 60 |  |  | 55
Property and equipment |  |  | 180 |  |  | 170
Total deferred tax assets |  |  | 5,574 |  |  | 5,442
Deferred tax liabilities |  |  |  |  |  |
Basis difference arising from intangible assets of acquisition |  |  | (13,008) |  |  | (13,581)
Total deferred tax liabilities |  |  | (13,008) |  |  | (13,581)
Net deferred tax liabilities |  | $ | (7,434) |  | $ | (8,139)
As of December 31, 2019 and 2018, the Company had approximately $4.0 million and $1.6 million, respectively, of federal net operating loss carryforwards ("NOLs") available to offset future taxable income. The NOL as of December 31, 2017 of $0.8 million has an expiration period from 2036 through 2037. The NOL generated during tax years beginning after December 31, 2017 of $3.3 million has an indefinite life and does not expire. As of December 31, 2019 and 2018, management does not believe the Company has any material uncertain tax positions that would require it to measure and reflect the potential lack of sustainability of a position on audit in its consolidated financial statements. The Company will continue to evaluate its uncertain tax positions in future periods to determine if measurement and recognition in its consolidated financial statements is necessary. The Company does not believe there will be any material changes in its unrecognized tax positions over the next year.

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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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