Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

At September 30, 2019 and December 31, 2018, the Company had no unrecognized tax benefits, no accrued interest and penalties, and no significant uncertain tax positions.  No interest and penalties were recognized during the periods ended September 30, 2019 and December 31, 2018.

At September 30, 2019 and December 31, 2018, the Company had unused net operating loss (“NOL”) carryforwards of $4,672,985 and $3,865,253, respectively, which will begin to expire in 2038, if unused.  At September 30, 2019 and December 31, 2018, the Company had capital loss carryforwards of $345,246 and $164,566, respectively.  At the time of the conversion and merger, the Company had unused NOLs of $5,310,679, which are subject to limitations under Section 382 of the Internal Revenue Code and are limited in the amount that can be utilized in any one year.  

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all the Company’s deferred tax assets will not be realized.  The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.  Management considers the scheduled reversal of deferred tax liabilities (including the impact of carryback and carryforward periods), tax planning strategies, and projected future taxable income in making this assessment.  At September 30, 2019 and December 31, 2018, management determined that it was more likely than not that all the deferred tax assets will be realized by the Company in future years.  Accordingly, the Company did not record a valuation allowance against its deferred tax assets at September 30, 2019 and December 31, 2018.