|12 Months Ended|
Dec. 31, 2018
|Income Tax Disclosure [Abstract]|
14. Income Taxes
The components of the expense for income taxes are as follows for the years ended December 31, 2018 and 2017:
The effective tax rate is reconciled to the U.S. federal statutory rate as follows as of December 31, 2018 and 2017, respectively:
The tax effects of the temporary differences between financial statement income and taxable income are recognized as deferred tax assets and liabilities. Significant components of the deferred tax assets and liabilities as of December 31, 2018 and 2017 respectively are as follows:
The Company has established a valuation allowance to fully reserve the net deferred tax asset due to the uncertainty of the timing and amounts of future taxable income. At December 31, 2017, the Company had a federal tax loss carry forward of $68,146,909 and a foreign tax loss carry forward of $15,857,215, both of which have been fully reserved. At December 31, 2018, the Company has a federal tax loss carry forward of $91,139,261 and a foreign tax loss carry forward of $23,142,711, both of which have been fully reserved.
The loss carryforwards expire as follows:
The Company records accrued interest and penalties related to unrecognized tax benefits in general and administrative expense. No amounts of interest expense and penalties have been accrued or recognized related to unrecognized tax benefits since inception. We are currently subject to a three-year statute of limitations by major tax jurisdictions.
On June 20, 2017, all convertible debt was converted into approximately 29.5 million shares of the Company’s Common Stock resulting in a change of ownership greater than 50%. As a result, the Company’s ability to offset its income with its U.S. net operating losses are limited by the Internal Revenue Code Section 382.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef