Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

20. INCOME TAXES

The Coronavirus Aid, Relief, and Economic Security Act ("CARES" Act") was enacted on March 27, 2020 in the United States. The CARES Act and related notices include several significant provisions, including delaying certain payroll tax payments, mandatory transition tax payments under the Tax Cuts and Jobs Act ("TCJ Act"), and estimated tax payments. We do not currently expect the CARES Act to have a material impact on our financial results. We will continue to monitor and assess the impact of the CARES Act and similar legislation with respect to what impact they may have on our business and financial results.

The Company's income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to income (loss) from continuing operations before tax for the three months ended March 31, 2020 and the period January 10, 2019 (Inception) to March 31, 2019 due to the following:

	March 31, 2020						March 31, 2019
(Amounts in US$'s)	US$'s			Rates			US$'s			Rates
Income tax benefit at statutory federal income tax rate	$	(1,475,300	)		21.00	%	$	(243,591	)		21.00	%
State tax expense, net of federal benefit		(281,000	)		4.00	%		(46,398	)		4.00	%
Permanent items		400			(0.01	)%		—			—
Valuation allowance		1,755,900			(24.99	)%		—			—
Income tax expense (benefit)		—					$	(289,990	)		25.00	%

To determine the quarterly provision for income taxes, we use an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in various jurisdictions in which we are subject to tax. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rate from quarter to quarter. We recognize interest and penalties related to uncertain tax positions, if any, as an income tax expense. As of March 31, 2020, and December 31, 2019, we had not recorded any liabilities for uncertain tax positions. There were no discrete items for the quarter ended March 31, 2020.

We record valuation allowances to reduce our deferred tax asset to an amount that we believe is more likely than not to be realized. In assessing the realizability of deferred tax assets, management considered whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income during the period in which those temporary differences become deductible. During the three months ended March 31, 2020, the Company recorded a change in the valuation allowance of $1,756,000 as compared to $0 for the three months ended March 31, 2019.

It is our policy to establish reserves based on management's assessment of exposure for certain tax positions taken in previously filed tax returns that may become payable upon audit by taxing authorities. Our tax reserves are analysed quarterly, and adjustments are made as events occur that we believe warrant adjustments to those reserves. Management has not recorded any reserves for uncertain tax positions.