Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Valuation Allowance

The activity in the deferred tax valuation allowance was as follows for the years ended December 31, 2019 and 2018:

 

    Year ended December 31,  
    2019     2018  
Beginning balance   $ 7,176,391     $ 6,620,464  
Provision     371,468       400,158  
Adjustments/true-ups     (393,349 )     155,769  
Ending balance   $ 7,154,510     $ 7,176,391  

Schedule of Income Before Income Tax, Domestic and Foreign

The loss before tax for financial reporting purposes during the years ended December 31, 2019 and 2018 consisted of the following:

 

    Year ended December 31,  
    2019     2018  
United States   $ (1,154,831 )   $ (4,111,539 )
Foreign     475,811       1,815,674  
Total   $ (679,020 )   $ (2,295,865 )

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the years ended December 31, 2019 and 2018 consisted of the following:

 

    Year ended December 31,  
    2019     2018  
Current:            
Federal   $                 -     $                 -  
State     102,677       49,000  
Foreign     9,937       1,341  
      112,614       50,341  
Deferred:                
Federal     27,689       (225,347 )
State     52,477       17,621  
      80,166       (207,726 )
Total income tax provision (benefit)   $ 192,780     $ (157,385 )

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred income taxes as of December 31, 2019 and 2018 are as follows:

 

    December 31, 2019     December 31, 2018  
Deferred tax assets:                
Allowance for doubtful accounts   $ 65,529     $ 46,492  
Deferred revenue     4,807       4,664  
Deferred rent     -       4,275  
Property and intangible assets     2,301,987       2,336,221  
State net operating loss (“NOL”) carryforwards     910,274       636,578  
Federal net operating loss (“NOL”) carryforwards     4,146,274       3,789,618  
Section 163(j) interest limitation     13,499       51,319  
Cumulative translation adjustment     216,255       349,834  
Stock based compensation     118,377       335,785  
ASC 606 - Section 481(A) adjustment     (185,162 )     -  
ASC 842-ROU asset     (790,446 )     -  
ASC 842 - Lease liability     799,376       -  
Other     18,238       (24,654 )
Valuation allowance     (7,154,510 )     (7,176,391 )
Total deferred tax assets     464,498       353,741  
Deferred tax liabilities:                
Goodwill amortization     (709,010 )     (518,087 )
Net deferred tax liability   $ (244,512 )   $ (164,346 )

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate (21%) for 2019 and 2018 to the Company’s effective income tax rate (determined in dollars) for the years ended December 31, 2019 and 2018 is as follows:

 

    Year ended December 31,  
    2019     2018  
Federal benefit at statutory rate   $ (142,594 )   $ (482,132 )
Increase (decrease) in income taxes resulting from:                
State tax expense, net of federal benefit     142,079       29,646  
Non-deductible items     24,883       15,332  
Impact of foreign operations     31,408       (525,583 )
Subpart F GILTI inclusion     69,862       360,742  
Deferred true-up     332,792       (142,869 )
Valuation allowance     (304,009 )     555,927  
Additional tax goodwill/contingent consideration     38,359       31,553  
Total income tax provision (benefit)   $ 192,780     $ (157,385 )