Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

20. INCOME TAXES

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 six months ended June 30, 2020 and the period January 10, 2019 (Inception) to June 30, 2019 due to the following:

	Six Months Ended June 30, 2020						January 10, 2019 (Inception) to June 30, 2019
(Amounts in US$'s)	US$'s			Rates			US$'s			Rates
Income tax benefit at statutory federal income tax rate	$	(3,009,100	)		21.00	%	$	(1,416,362	)		21.00	%
State tax expense, net of federal benefit		(573,200	)		4.00	%		(269,783	)		4.00	%
Permanent items		400			(0.01	)%		—			—
Other		6,100			(0.04	)%		—			—
Valuation allowance		3,575,800			(24.99	)%	$				(25.00	)%
Income tax expense (benefit)		—					$	1,686,145			25.00	%

To determine the quarterly provision for income taxes, the Company uses 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 the Company is 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. The Company recognizes interest and penalties related to uncertain tax positions, if any, as an income tax expense. As of June 30, 2020, and December 31, 2019, the Company had not recorded any liabilities for uncertain tax positions. There were no discrete items for the quarter ended June 30, 2020.

The Company records valuation allowances to reduce its deferred tax asset to an amount that it believes 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 June 30, 2020, the Company recorded a change in the valuation allowance of $1,819,900 as compared to $0 for the three months ended June 30, 2019.

It is the Company's 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. The Company's tax reserves are analyzed quarterly, and adjustments are made as events occur that the Company believes warrant adjustments to those reserves. Management has not recorded any reserves for uncertain tax positions.