Annual report pursuant to Section 13 and 15(d)

14. Income Taxes (Tables)

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14. Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of deferred tax assets and liabilities

Net deferred tax liabilities consist of the following components as of December 31, 2018 and 2017:

 

  2018     2017  
Deferred tax assets:              
NOL Carryover $ 8,278,500     $ 6,406,000  
Bad Debt Reserve   –       31,000  
Inventory Reserve   7,300       7,300  
Deferred Rent   10,600       –  
Accrued Compensated Absences   37,100       46,100  
Charitable Contributions   6,900       3,500  
Subtotal   8,340,400       6,493,900  
Valuation Allowance   (7,619,300 )     (6,458,800 )
Deferred tax liabilities:              
Convertible Notes   (658,800 )     –  
Depreciation and Amortization   (49,100 )     (16,500 )
Prepaid Expenses   (13,200 )     (18,600 )
Net Deferred Tax Asset $ –     $ –  
Schedule of effective income tax rate reconciliation
    2018     2017  
Income Tax Expense Computed at the Statutory Federal Rate   $ (1,890,800 )   $ (1,669,000 )
State Income Taxes, Net of Federal Tax Effect     (506,700 )     –  
Meals and Entertainment     5,200       10,600  
Stock Options     (3,500 )     225,700  
Intangible Assets     365,400       –  
Tax Cut and Job Act Impact     –       2,809,700  
Other     21,400       1,600  
Valuation Allowance     2,009,000       (1,378,600 )
    $ –     $ –