Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule (benefit) provision for income taxes

The provision for income taxes is as follows for the years ended December 31, 2018 and 2017:

	Year Ended December 31,
	2018		2017
Income tax expense at statutory federal rate
Current:
Federal	$	-	$	-
State		13,106		49
Total current		13,106		49
Deferred:
Federal		-		-
State		-		-
Change in valuation allowance		-		-
Total deferred		-		-
Provision for income taxes	$	13,106	$	49

Schedule of reconciliation between the statutory rate and the effective tax rate

The differences between our effective income tax rate and the U.S. federal income tax rate for the years ended December 31, 2018 and 2017 are:

	2018			2017
Expected income tax provision at the federal statutory rate		21.00	%		34.0	%
Loss on debt extinguishment		-			0.98	%
Change in contingent liability		4.20	%		1.62	%
Impact of the change in the federal corporate rate		-			(81.79	)%
Adjustment for forfeiture of non-qualified stock options		(0.16	)%		(5.69	)%
Other		(6.93	)%		(0.13	)%
Release of valuation allowance		(18.48	)%		51.02	%
Effective tax rate		(0.38	)%		0.00	%

Schedule of deferred tax assets

The deferred tax assets, including a valuation allowance, are as follows at December 31:

	Year Ended December 31,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	9,789,000		$	8,997,000
Stock compensation		253,000			243,000
Reserves and accruals		491,000			241,000
Deferred tax asset (DTA)		10,533,000			9,481,000
Basis difference in intangibles and fixed assets		(422,000	)		(603,000	)
Deferred tax liability (DTL)		(422,000	)		(603,000	)
Net operating loss		10,111,000			8,878,000
Valuation allowance		(10,111,000	)		(8,878,000	)
Net current deferred tax assets	$	-		$	-