Income taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income taxes

Schedule of components of income before income taxes

The components of income before income taxes for the years ended December 31, 2019 and 2018 are as follows:

	Year Ended December 31,
	2019		2018
Foreign (not subject to income taxes)	$	13,593,497	$	15,100,642
Mexico		(2,458,210)		(3,115,656)
United States		2,657,405		(153,003)
		13,792,692		11,831,983
Less gain on sale of discontinued operations		(3,621,170)		—
Less discontinued operations		—		(1,115,825)
	$	10,171,522	$	10,716,158

Schedule of provision for income taxes deferred tax benefit relating to U.S. operations

The Company’s provision for (benefit from) income taxes for the years ended December 31, 2019 and 2018, which related to U.S. operations, consisted of the following:

	Year Ended December 31,
	2019		2018
Current:
Federal	$	143,567	$	100,806
State		171,093		106,922
Foreign		—		—
Total		314,660		207,728
Deferred:
Federal		(203,031)		(302,440)
State		(45,008)		(62,579)
Foreign		—		—
Total		(248,039)		(365,019)
Total provision	$	66,621	$	(157,291)

Schedule of reconciliation of federal tax rate to the effective benefit rate

A reconciliation of the U.S. statutory federal tax rate to the effective benefit rate for the U.S. loss before income taxes for the years ended December 31, 2019 and 2018 is as follows:

	Year Ended December 31,
	2019		2018
U.S. statutory federal rate	21.00	%	21.00	%
State taxes, net of federal effect	4.38	%	4.22	%
Nontaxable foreign income	(30.09)	%	(38.26)	%
Research & development tax credit	(3.46)	%	(2.27)	%
Permanent items	(0.79)	%	1.26	%
Valuation allowance for deferred tax assets	9.45	%	12.72	%
	0.49	%	(1.33)	%

Schedule of tax effects of significant items net long-term deferred tax assets liability

The tax effects of significant items comprising the Company’s net long-term deferred tax liability as of December 31, 2019 and 2018 were as follows:

	December 31,
	2019		2018
Deferred tax assets:
Operating loss carryforwards - Mexico	$	3,427,295	$	3,020,049
Land basis difference - Mexico		1,164,365		999,719
Start-up costs - Mexico		4,608,990		3,856,942
Research & development tax credits - U.S.		166,653		—
Valuation allowances		(9,244,550)		(7,876,710)
		122,753		—
Deferred tax liabilities:
Property and equipment - U.S.		148,707		180,431
Intangible assets - U.S.		1,380,328		479,443
		1,529,035		659,874
Net deferred tax liability	$	1,406,282	$	659,874