Income Taxes

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019

Income Taxes

Income Taxes

NOTE 9 — INCOME TAXES

The Company’s financial statements include total net income before taxes of $60,516 and $1,095,793 for the three months ended March 31, 2020 and 2019. The Company made no tax payments during the three months ended March 31, 2020 and 2019. The income tax provision consists of the following:

	For the three months ended March 31,
	2020		2019
Federal:
Current	$	230,470	$	151,046
Deferred		(81,710)		79,070
State and Local:
Current		56,107		36,683
Deferred		(19,811)		19,203
Income tax provision	$	185,056	$	286,002

The table below presents the Company’s deferred income taxes as of:

	March 31, 2020		December 31, 2019
Deferred tax asset (liability):
Unrealized gains on marketable securities	$	—	$	(101,521)
Start-up costs		357,750		241,613
Less: Valuation Allowance		(357,750)		(241,613)
Deferred tax liability	$	—	$	(101,521)

The Company files income tax returns in the U.S. federal jurisdiction and in New York and is subject to examination by the taxing authorities. The Company considered New York to be a significant state tax jurisdiction. Its income tax returns are open for audit for tax years 2018 and forward.

NOTE 8—INCOME TAXES

The Company’s financial statements include total net income before taxes of $4,122,829 and $2,588,681 for the years ended December 31, 2019 and 2018. The income tax provision consists of the following:

	December		December
	31, 2019		31, 2018
Federal:
Current	$	991,989	$	460,929
Deferred		(1,256)		82,694
State and Local:
Current		401,637		111,940
Deferred		—		20,083
Income tax provision	$	1,392,370	$	675,646

Reconciliations of the differences between the provision for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows:

	2019
	Amount		Percent of Pretax Income
Current tax at U.S. statutory rate	$	865,932	21.00	%
State taxes, net of federal benefit		211,707	5.14	%
Effect of prior year underaccrual		73,118	1.77	%
Change in Valuation Allowance		241,613	5.86	%
Total Income Tax Provision	$	1,392,370	33.77	%

	2018
	Amount		Percent of Pretax Income
Current tax at U.S. statutory rate	$	543,623	21.00	%
State taxes, net of federal benefit		132,023	5.10	%
Total Income Tax Provision	$	675,646	26.10	%

The components of deferred tax liabilities as of December 31, 2019 and 2018 are as follows:

	December		December
	31, 2019		31, 2018
Deferred tax asset (liability):
Unrealized gains on marketable securities	$	(101,521)	$	(155,578)
Start-up costs		241,613		52,801
Less: Valuation Allowance		(241,613)		—
Deferred tax liability	$	(101,521)	$	(102,777)

The Company files income tax returns in the U.S. federal jurisdiction and in New York and is subject to examination by the taxing authorities. The Company considered New York to be a significant state tax jurisdiction. Our income tax returns are open for audit for tax years 2018 and forward.