Income Tax

12 Months Ended

Dec. 31, 2019

Income Tax Narrative

Income tax

NOTE 13 – INCOME TAX

A reconciliation of differences between the effective income tax rates and the statutory federal rates from continuing operations is as follows:

	2019						2018
	Rate			Amount			Rate			Amount
Income Tax benefit at US statutory Rate		21	%	$	484,065			21	%	$	1,631,172
State taxes, net of federal benefit		5	%		114,471			3	%		263,914
Change in valuation allowance		(26	)%		(598,546	)		(24	)%		(1,895,086	)
				$	—					$	—

The differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows for the year ended December 31, 2018 for discontinued operations:

Income Taxes (benefit) at Statutory Rate	$	37,443		21.0	%
Increase (Decrease) in Taxes Resulting From:
State Taxes, net of Federal Tax Benefit		(76	)	—
Graduated Tax Rates		—		—
Reduction in Federal Income Tax Rate		—		—
Other, Net		—		—
Income Taxes	$	37,367		21.0	%

Deferred income taxes primarily relate to differences between the amounts recorded for financial reporting purposes and the amounts recorded for income tax purposes.

Significant components of the Company’s deferred tax assets and liabilities are as follows:

December 31,

	2019			2018
Deferred Income Tax Assets (Liabilities):
Net Operational Loss Carryforwards	$	703,548		$	165,505
Intangible Assets		1,415,989			1,522,188
Research & Development Costs		366,868			228,699
Other, Net		7,227			(21,296	)
Gross Deferred Income Tax Assets (Liabilities)	$	2,493,632		$	1,895,096
Less: Valuation Allowance		(2,493,632	)		(1,895,096	)
Net Deferred Income Tax Asset	$	—		$	—

At December 31, 2019, the Company has net operating loss carryforwards of approximately $2,776,000 available to offset future taxable income with no expiration. Realization of the deferred tax assets, which relate to operating loss carry-forwards and timing differences, is dependent on future earnings. The timing and amount of future earnings are uncertain and therefore the Company has established a 100% valuation allowance.

As of December 31, 2019, the U.S. Federal and Florida income tax returns filed prior to 2016 are no longer subject to examination by the respective taxing authorities.