Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax (Provision)

The components of the expense for income taxes are as follows for the years ended December 31, 2018 and 2017:

 

    For the year ended December 31,  
    2018     2017  
Current   $       $    
Federal            
State            
Foreign           (633,530 )
Total   $     $ (633,530 )
Deferred   $     $  
Federal            
State            
Foreign            
Total   $     $  
Total income tax provision   $     $ (633,530 )

Schedule of Effective Income Taxes Rate

The effective tax rate is reconciled to the U.S. federal statutory rate as follows as of December 31, 2018 and 2017, respectively:

 

    For the year ended December 31,  
    2018     2017  
Income tax benefit at the applicable federal rate (21% for 2018; 34% for 2017)   $ (18,451,302 )   $ (9,377,343 )
Permanent difference     115,723       348,212  
Change in valuation allowance     23,775,367       (3,365,898 )
Deferred true-up     (3,192,297 )     1,785,761  
Remeasurement of deferred taxes for tax law change     121,471       7,813,999  
Currency exchange rate change     2,342,681       2,809,109  
Foreign rate differential     (1,594,237 )     3,160  
Employee Retention credit     (3,117,406 )     (17,000 )
Withholding tax           (633,530 )
Income tax expense (benefit)   $     $ (633,530 )

Schedule of Deferred Income Tax Assets

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:

 

    December 31, 2018     December 31, 2017  
Deferred assets                
Stock-based compensation   $ 816,273     $ 376,224  
Accrued vacation     51,306       54,335  
Accrued bonus     31,270       235,297  
Interest limitation     519,149       226,664  
Bad debt allowance     692,266        
Employee retention credit           17,000  
R&D credit     46,497       46,497  
Other accruals     60,298       118,500  
Intangible assets     1,630       1,396  
Net operating loss carryforward     29,324,272       19,283,115  
Total deferred tax assets   $ 31,542,961     $ 20,359,028  
Deferred liability                
Prepaids           (2,758 )
Property, plant and equipment     6,194,220       (6,394,456 )
Total deferred tax liabilities   $ 6,194,220     $ (6,397,214 )
Net deferred tax asset     37,737,181       13,961,814  
Valuation allowance     (37,737,181 )     (13,961,814 )
Total net deferred tax assets   $     $  

Summary of Loss Carryforwards Expiration Year

The loss carryforwards expire as follows:

 

Expiration year   Amount  
2019   $ 179,117  
2020     395,023  
2021     1,188,455  
2022     2,546,339  
2023 and forward     109,973,037  
Total   $ 114,281,971