Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Provision for Income Taxes

Significant components of the tax benefit recognized in the accompanying consolidated statements of operations for the period subsequent to the initial public offering (October 23, 2015 to December 31, 2016) are as follows:

	Year Ended			Period Ended
	December 31, 2016			December 31, 2015
Current tax benefit
Federal	$	1,402,230		$	171,007
State		81,611			9,953
		1,483,841			180,960
Deferred tax expense		(172,882	)		(34,405	)
	$	1,310,959		$	146,555

Schedule of Reconciliation of Tax Provision with Expected Provision

The reconciliation of the income tax computed at the combined federal and state statutory rate of 37.63% to the income tax benefit is as follows:

	Year Ended December 31,						Period Ended December 31,
	2016			2016			2015			2015
Benefit on net loss after initial public offering of $3,681,349 and $166,711	$	1,385,291			37.6	%	$	62,733			37.6	%
Nondeductible expenses		(48,375	)		(1.3	)%		(7,246	)		(4.3	)%
Tax benefit of historical carryover basis at contribution of members' interest		-			0.0	%		91,068			54.6	%
Other items		(25,957	)		(0.7	)%		-			0.0	%
Tax benefit/effective rate	$	1,310,959			35.6	%	$	146,555			87.9	%

Components of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax liabilities and assets as of December 31, 2016 and December 31, 2015 are as follows:

	As of December 31,
	2016		2015
Deferred tax liabilities:
Tax expense for debt issuance costs	$	37,403	$	-
Tax expense for internally developed software		25,752		34,280
Tax depreciation in excess of book		14,710		7,523
		77,865		41,803
Deferred tax assets:
Loss carryforwards		1,641,485		180,960
Step up in basis at contribution to C-Corp		1,584,758		1,826,688
Stock option expense		108,994		5,369
Step up in basis - purchase of non-controlling interest		96,583		102,325
Allowance for credit losses		47,038		47,038
Accrued liabilities		30,543		-
		3,509,401		2,162,380
Net deferred tax asset	$	3,431,536	$	2,120,577