| Schedule of Components of Income Tax Expense (Benefit) |
The following summarizes the income tax provision (benefit):
| |
|
For The Years/ Transitional Three Months Ended |
|
| |
|
As Of
December 31, 2016
|
|
|
Transitional Three Months As Of December 31, 2015 |
|
|
As Of
September 30, 2015
|
|
| Current: |
|
|
|
|
|
|
|
|
|
|
|
|
| Federal |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| State and local |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Utilization of fully reserved net operating losses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Deferred: |
|
|
|
|
|
|
|
|
|
|
|
|
| Federal |
|
|
1,901,847 |
|
|
|
(196,481 |
) |
|
|
(1,186,733 |
) |
| State and local |
|
|
55,937 |
|
|
|
(5,779 |
) |
|
|
98,834 |
|
| |
|
|
1,957,784 |
|
|
|
(202,260 |
) |
|
|
(1,087,899 |
) |
| Change in valuation allowance |
|
|
(1,957,784 |
) |
|
|
202,260 |
|
|
|
1,087,899 |
|
| Income tax provision (benefit) |
|
$ |
- |
|
|
|
- |
|
|
$ |
- |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The Company has the following net deferred tax
assets:
| |
|
For The Years/Transitional Three Months Ended |
|
| |
|
As Of
December 31, 2016
|
|
|
Transitional Three Months As Of December 31, 2015 |
|
|
As Of
September 30, 2015
|
|
| Net operating loss carryforwards |
|
$ |
4,936,966 |
|
|
$ |
1,870,583 |
|
|
$ |
1,445,277 |
|
| Accruals |
|
|
800,443 |
|
|
|
1,425,039 |
|
|
|
2,007,371 |
|
| Other - reserves |
|
|
52,500 |
|
|
|
301,631 |
|
|
|
301,631 |
|
| Deferred tax assets, gross |
|
|
5,789,909 |
|
|
|
3,597,253 |
|
|
|
3,754,279 |
|
| Property and equipment |
|
|
(507,728 |
) |
|
|
(272,856 |
) |
|
|
(192,219 |
) |
| Sub-total |
|
|
5,282,181 |
|
|
|
3,324,397 |
|
|
|
3,562,060 |
|
| Valuation allowance |
|
|
(5,282,181 |
) |
|
|
(3,324,397 |
) |
|
|
(3,562,060 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred tax assets, net |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The reconciliation of the expected tax expense (benefit),
based on statutory rates, with the actual expense, is as follows:
| |
|
For The Years/Transitional Three Months Ended |
|
| |
|
Year Ended
December 31, 2016
|
|
|
Transitional
Three Months Ended December 31, 2015
|
|
|
Year Ended
September 30, 2015
|
|
| Expected federal statutory rate |
|
|
34.0 |
% |
|
|
34.0 |
% |
|
|
34.0 |
% |
| State tax rate, net of federal benefit |
|
|
1.0 |
% |
|
|
1.0 |
% |
|
|
3.1 |
% |
| Permanent differences - meals & entertainment |
|
|
(3.5 |
)% |
|
|
2.0 |
% |
|
|
0.8 |
% |
| Change in valuation allowance |
|
|
(31.5 |
)% |
|
|
(37.0 |
)% |
|
|
(37.9 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax provision (benefit) |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|