INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax (benefit) expense for the years ended December 31, 2018 and 2017 are as follows:



	December 31, 2018			December 31, 2017
Current federal tax (expense)/benefit	$	(137,212	)	$	—
Deferred federal tax (expense)/benefit	137,212			274,423
Total federal tax (expense)/benefit	$	—		$	274,423

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation between the amount determined by applying the U.S. federal income tax rate of 21% and 34% to pretax income from continuing operations as a result of the following for the years ended December 31, 2018 and 2017, respectively:



	December 31, 2018			December 31, 2017
Statutory tax on book income	$	(417,000	)	$	(2,860,000	)
Permanent differences	(46,000		)	135,000
Change in expected tax rate	—			6,897,408
Change in valuation allowance	967,000			(3,672,000		)
Prior year return true up	(504,000		)	(774,831		)
Income tax expense (benefit)	$	—		$	(274,423	)

Schedule of Deferred Tax Assets and Liabilities

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented below:



	December 31, 2018			December 31, 2017
Deferred tax assets:
Alternative minimum tax credits	$	137,000		$	274,000
Accrued bonus and stock based compensation	358,000			225,000
Intangible assets	1,368,000			1,013,000
Bad debt reserve	175,000			344,000
Contribution carryover	26,000			18,000
Disallowed interest expense IRC Section 163(j)	190,000			—
Net operating loss carry forwards	12,500,000			11,670,000
Less valuation allowance	(12,109,000		)	(11,142,000		)
Total deferred tax assets	$	2,645,000		$	2,402,000

	December 31, 2018			December 31, 2017
Deferred tax liabilities:
Accelerated tax depreciation	$	(2,444,000	)	$	(2,128,000	)
Contingent liability	3,000			—
Vertex Recovery Management LA	(67,000		)	—
Total deferred tax liabilities	$	(2,508,000	)	$	(2,128,000	)

Net deferred tax assets	$	137,000		$	274,000