Annual report pursuant to Section 13 and 15(d)

15. Income Taxes (Tables)

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15. Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of deferred tax assets and liabilities
    2019     2018  
Deferred tax assets:                
NOL Carryover   $ 10,068,800     $ 8,278,500  
Lease Liability     1,166,400       –  
Inventory Reserve     –       7,300  
Deferred Rent     –       10,600  
Accrued Compensated Absences     27,800       37,100  
Secured Convertible Notes     2,000       –  
Charitable Contributions     6,900       6,900  
Subtotal     11,271,900       8,340,400  
Valuation Allowance     (10,068,700 )     (7,619,300 )
Deferred tax liabilities:                
Convertible Notes     –       (658,800 )
Right of Use Assets     (1,122,100 )     –  
Deferred Rent     (12,100 )     –  
Depreciation and Amortization     (48,900 )     (49,100 )
Prepaid Expenses     (20,100 )     (13,200 )
Net Deferred Tax Asset   $ –     $ –  
Schedule of effective income tax rate reconciliation

The income tax provision differs from the amount of income tax determined by applying the U.S. federal tax rate to pretax income from continuing operations for the years ended December 31, 2019 and 2018 due to the following:

 

    2019     2018  
Income Tax Expense Computed at the Statutory Federal Rate   $ (2,411,100 )   $ (1,890,800 )
State Income Taxes, Net of Federal Tax Effect     (613,300 )     (506,700 )
Meals and Entertainment     6,700       5,200  
Stock Options     38,700       (3,500 )
Intangible Assets     –       365,400  
Secured Convertible Notes     483,100          
Warrants     38,200       –  
Other     8,300       21,400  
Valuation Allowance     2,449,400       2,009,000  
    $ –     $ –