Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:

 

    December 31  
    2017     2016  
Current:                
Federal   $ —     $ —  
State and local     —       —  
      —       —  
Deferred:                
Federal     346       1,902  
State and local     214       56  
      560       1,958  
Change in valuation allowance     —       (1,958 )
Income tax provision (benefit)   $ 560     $ —

Schedule of Deferred Tax Assets

The reconciliation of the expected tax expense (benefit), based on statutory rates, with the actual expense, is as follows:

 

    December 31  
    2017     2016  
Deferred tax assets:                
Net operating loss carryforwards   $ 6,081     $ 4,937  
Accrued liabilities     1,528       800  
Reserves     222       52,500  
Stock-based compensation     604       —  
Intangible assets     990       —  
Gross deferred tax assets     9,425       5,790  
Valuation allowance     (9,103 )     (5,282 )
Gross deferred tax assets after valuation allowance     322       508  
Deferred tax liability – goodwill     (560 )     —  
Deferred tax liability – Property and equipment     (322 )     (508 )
Net deferred tax assets   $ (560 )   $ —

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory tax rate and the effective tax rates for the years ended December 31, 2017 and 2016 is as follows:

 

    December 31  
    2017     2016  
U.S federal statutory rate     34 %     34.0 %
State income taxes, net of federal benefit     4.2 %     1.0 %
Nondeductible - meals & entertainment     (0.3 )%     (3.5 )%
Warrant derivative gains or losses     2.1 %        
Impact of tax law change     (24.1 )%        
Change in valuation allowance     (19.6 )%     (31.5 )%
Other     0.8 %     -  
Effective tax rate     (2.9 )%     0.0 %