Income Tax Matters (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2018 and 2017 are as follows:

	December 31, 2018			December 31, 2017
Deferred tax assets:
Loss carryforwards	$	1,429,445		$	5,782,670
Capitalized costs		269,472			317,026
Unrealized losses on investments		390,349			123,454
Benefit reserves		192,858			656,180
Total deferred tax assets		2,282,124			6,879,330
Less valuation allowance		(1,928,454	)		(6,240,991	)
Total deferred tax assets, net of valuation allowance		353,670			638,339
Deferred tax liabilities:
Policy acquisition costs		-			263,683
Due premiums		117,131			133,891
Value of business acquired		-			89,765
Intangible assets		147,000			147,000
Policy loans		86,245			-
Property and equipment		3,294			4,000
Total deferred tax liabilities		353,670			638,339
Net deferred tax assets	$	-		$	-

Schedule of Effective Tax Rate Reconciliation

There was no income tax expense for the years ended December 31, 2018 and 2017. This differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% to pretax income, as a result of the following:

	Year Ended December 31,
	2018			2017
Computed expected income tax benefit	$	(1,063,749	)	$	(934,684	)
Increase (reduction) in income taxes resulting from:
Meals, entertainment and political contributions		8,402			15,288
Impact of rate change		-			3,931,708
Change in loss carryforward due to 382 limitation		5,595,636			-
Adjustment to prior period NOLs		-			878,069
Other		39,143			39,266
		5,643,181			4,864,331
Tax benefit before valuation allowance		4,579,432			3,929,647
Change in valuation allowance		(4,579,432	)		(3,929,647	)
Net income tax expenses	$	-		$	-