Income Tax (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Tables

Schedule of Components of Income Tax Expense

The components of income tax expense (benefit) attributable to continuing operations are as follows:

	Years ended December 31,
	2017			2016
Current expense:
Federal	$	—		$	—
State		—			—
Foreign		—			—
Deferred expense (benefit):
Federal	$	(762,580	)	$	—
State		(46,960	)		—
Total	$	(809,540	)	$	—

Schedule of Income Tax Rate Reconciliation

The differences between the Company’s consolidated income tax expense attributable to continuing operations and the expense computed at the 34% United States statutory income tax rate were as follows:

	Years ended December 31,
	2017			2016
Federal income tax expense at statutory rate	$	(4,495,000	)	$	(4,411,000	)
Increase (reduction) in income tax resulting from:
State and local income taxes, net of federal benefit		(194,000	)		69,000
Foreign rate differential		16,000			(18,000	)
Non-deductible expenses		9,000			8,000
Prior-period true-up		—			547,000
Research & development credit		(409,000	)		(575,000	)
Stock-based compensation		84,000			113,000
Acquisition costs		96,000			—
Reserve for loss carryforwards limited by Sec. 382		(541,000	)		—
Tax reform impact		8,024,000			—
Other		45,460			(1,000	)
Increase in valuation allowance		(3,445,000	)		4,268,000
	$	(809,540	)	$	—

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and operating loss carryforwards that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows at December 31, 2017 and December 31, 2016:

	December 31,
	2017			2016
Deferred tax assets:
Net operating loss carryforward	$	15,117,487		$	19,303,020
Research & development credit		1,966,964			1,557,475
Stock-based compensation		629,447			838,297
Contingent consideration		599,343			—
Other		128,522			203,661
Deferred tax assets		18,441,763			21,902,453
Deferred tax liabilities:
Property, plant and equipment, primarily due to differences in depreciation		(26,307	)		(41,953	)
Intangible assets		(1,302,220	)		—
Deferred tax liabilities:		(1,328,527	)		(41,953	)
Valuation allowance		(18,415,456	)		(21,860,500	)
Net deferred income taxes	$	1,302,220		$	—