JOINT AND SEVERAL PAYROLL LIABILITY

9 Months Ended

Sep. 30, 2018

Other Liabilities Disclosure [Abstract]

Joint and Several Payroll Liability

JOINT AND SEVERAL PAYROLL LIABILITY

As discussed in the Restatement Note (2), the Company did not report the correct amount of income to employees, nor did we collect and remit the employees' portion of income and payroll taxes, related to stock option exercises as required by the IRS. Due to IRS statutory requirements, we have joint and several liability for the full amount that was not withheld and remitted to the proper taxing authorities. This amount of the liability was approximately $0.7 million at September 30, 2018. The Company has recognized these amounts in other losses in the accompanying Consolidated Statements of Operations. If we can establish that our employees have in fact paid these obligations, either presently or in the future, we will be relieved of our liability.