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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Taxes [Abstract] |
Income Taxes |
8. | Income Taxes
The Company’s provision (benefit) for income taxes consists of the following for the year ended December 31, 2018 and 2017:
|  |  | 2018 |  |  | 2017 |
| Deferred: |  |  |  |  |  |
| Federal |  | $ | 94,031 |  |  | $ | 2,126,062 |
| State and local |  |  | (449,796 | ) |  |  | 200,294 |
| Total deferred |  |  | (355,765 | ) |  |  | 2,326,356 |
| Total provision (benefit) for income taxes |  |  | (355,765 | ) |  |  | 2,326,356 |
| Less: valuation reserve |  |  | 355,765 |  |  |  | (2,326,356 | )
| Income tax provision |  | $ | — |  |  | $ | — |
A reconciliation of the federal statutory rate to 0% for the year ended December 31, 2018 and 2017 to the effective rate for income from operations before income taxes is as follows:
|  |  | 2018 |  |  | 2017 |
| Benefit for income taxes at federal statutory rate |  |  | 21.0 | % |  |  | 34.0 | %
| State and local income taxes, net of federal benefit |  |  | 7.4 |  |  |  | 7.4 |
| Differences attributable to the Tax and Jobs Cut Act |  |  | — |  |  |  | (32.0 | )
| Differences attributable to change in state business apportionment |  |  | — |  |  |  | (4.7 | )
| Loss on debt conversion |  |  | — |  |  |  | (9.1 | )
| Prior year adjustment of taxes |  |  | — |  |  |  | (47.1 | )
| Other |  |  | — |  |  |  | (0.1 | )
| Less valuation allowance |  |  | (28.4 | ) |  |  | 51.6 |
| Effective income tax rate |  |  | 0.0 | % |  |  | 0.0 | %
The tax effects of these temporary differences along with the net operating losses, net of an allowance for credits, have been recognized as deferred tax assets (liabilities) at December 31, 2018 and 2017 as follows:
|  |  | 2018 |  |  | 2017 |
| Net operating loss carryforward |  | $ | 2,786,519 |  |  | $ | 3,738,980 |
| Bad debt reserve |  |  | 238,194 |  |  |  | 9,709 |
| Employee stock compensation |  |  | 364,699 |  |  |  | 255,322 |
| Intangible assets |  |  | (684,722 | ) |  |  | (858,811 | )
| Depreciation |  |  | (2,548 | ) |  |  | 2,567 |
| Accrued expenses |  |  | 89,861 |  |  |  | — |
| Charity |  |  | 233 |  |  |  | 234 |
| Net deferred tax asset |  |  | 2,792,236 |  |  |  | 3,148,001 |
| Valuation allowance |  |  | (2,792,236 | ) |  |  | (3,148,001 | )
| Net deferred tax asset |  | $ | — |  |  | $ | — |
The Company establishes a valuation allowance, if based on the weight of available evidence, it is more likely than not that some portion or all of the deferred assets will not be realized. During 2018 certain adjustments were made to the Company’s net operating loss carryforward tax asset for IRC Section 382 limitations. The valuation allowance increased (decreased) by $(335,765) and $(2,326,356) during 2018 and 2017, respectively. As of December 31, 2018, the Company had a net operating loss carryforward of approximately $9.8 million for Federal and State tax purposes. The net operating loss expires beginning 2030 through 2037. The Company’s net operating loss carryforward may be subject to annual limitations, which could reduce or defer the utilization of the losses as a result of an ownership change as defined in Section 382 of the Internal Revenue Code. As required by the provisions of ASC 740, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Differences between tax positions taken or expected to be taken in a tax return and the net benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740. The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expenses. As of December 31, 2018, the Company has no unrecognized tax positions, including interest and penalties. The tax years 2015 - 2017 are still open to examination by the major tax jurisdictions in which the Company operates. The Company files returns in the United States Federal tax jurisdiction and various other state jurisdictions.

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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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