INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure Income Taxes Tables Abstract

Provision of income taxes

	December 31, 2018			December 31, 2017
Current Federal and State	$	(85,000	)	$	-
Deferred Federal and State		(697,000	)		(1,091,000	)
Total (benefit) provision for income taxes	$	(782,000	)	$	(1,091,000	)

A reconciliation effective income tax rate

	December 31, 2018			December 31, 2017
Federal tax		21.0	%		34.0	%
State tax		8.1	%		6.8	%
Gain on bargain purchase		5.8	%		34.0	%
Permanent items		(2.2	)%		(0.2	)%
Rate change from TCJA		4.3	%		31.8	%
Other		(2.3	)%		34.0	%
Effective income tax rate		34.7	%		72.1	%

Deferred tax assets and liabilities

	December 31, 2018			December 31, 2017
Deferred tax assets
Receivables	$	8,000		$	4,000
Accrued management fee		58,000			-
Inventory obsolesce		29,000			-
Other		7,000			-
Loss carryforward		473,000			217,000
Total deferred tax assets	$	575,000		$	221,000
Deferred tax liabilities
Fixed assets	$	(940,000	)	$	(1,209,000	)
IRC Sec 481 Change in Accounting Method		-			-
Total deferred tax liabilities	$	(940,000	)	$	(1,209,000	)
		-			-
Total net deferred income tax liabilities	$	(365,000	)	$	(988,000	)

Unrecognized tax benefits

	December 31, 2018			December 31, 2017
Gross unrecognized tax benefit at the beginning of the year	$	126,000		$	130,000
Increase in tax positions to the current year		-			-
Adjustment to acquisition purchase price		(120,000	)		-
Decreases due to lapses in applicable statutes of limitations		(6,000	)		(4,000	)
Total (benefit) provision for income taxes	$	-		$	126,000