Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Taxes  
Schedule Of Pre Tax Earnings

Pre-tax earnings consisted of the following for the years ended:

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

December 31, 

 

    

2019

    

2018

    

2017

Pre-Tax Income (Loss)

 

 

  

 

 

  

 

 

  

U.S.

 

$

(26,482,033)

 

$

(22,082,137)

 

$

(19,680,720)

Outside the U.S.

 

 

5,663

 

 

206,424

 

 

47,218

Total Pre-Tax Income (Loss)

 

$

(26,476,370)

 

$

(21,875,713)

 

$

(19,633,502)

 

Schedule of Components of Income Tax Expense (Benefit)

The provision expense/(benefit) for income taxes for the years ended December 31, 2019, 2018 and 2017 was as follows:

 

 

 

 

 

 

 

 

 

 

 

    

2019

    

2018

    

2017

U.S. Income Taxes:

 

 

  

 

 

  

 

 

  

Current Provision

 

$

 —

 

$

 —

 

$

 —

Deferred Provision

 

 

(5,382,746)

 

 

(4,848,470)

 

 

3,639,752

Valuation Allowance

 

 

5,382,746

 

 

4,848,470

 

 

(3,639,752)

Income Taxes Outside the U.S.:

 

 

 

 

 

  

 

 

  

Current Provision

 

 

 —

 

 

 —

 

 

 —

Deferred Provision

 

 

(511,672)

 

 

41,285

 

 

215,745

Valuation Allowance

 

 

511,672

 

 

(41,285)

 

 

(215,745)

State Income Taxes:

 

 

  

 

 

  

 

 

  

Current Provision

 

 

 —

 

 

 —

 

 

 —

Deferred Provision

 

 

(189,200)

 

 

(140,933)

 

 

(59,530)

Valuation Allowance

 

 

189,200

 

 

140,933

 

 

59,530

Total Provision

 

$

 —

 

$

 —

 

$

 —

 

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory U.S. federal income tax rate to the effective rates for the years ended December 31, 2019, 2018 and 2017 is as follows:

 

 

 

 

 

 

 

 

    

2019

    

2018

    

2017

 

 

%  

 

%  

 

%

Federal Income Tax at Statutory Rate

 

21.0

 

21.0

 

34.0

State Tax Provision, Net of Federal Benefit

 

0.3

 

0.3

 

0.3

Change in Corporate Tax Rates from 34% to 21%

 

 —

 

 —

 

(52.9)

Permanent Differences

 

(0.1)

 

(1.5)

 

(2.4)

Federal Tax Credits

 

1.3

 

2.5

 

1.1

Stock Compensation

 

(1.9)

 

 —

 

 —

Foreign Tax Provision

 

1.9

 

 —

 

 —

Other

 

0.5

 

0.3

 

0.6

Effective Tax Rate

 

23.0

 

22.6

 

(19.3)

Change in Valuation Allowance

 

(23.0)

 

(22.6)

 

19.3

Net Effective Tax Rate

 

 —

 

 —

 

 —

 

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities at year end are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

December 31, 

 

    

2019

    

2018

    

2017

Deferred Tax Assets:

 

 

  

 

 

  

 

 

  

Net Operating Loss Carry-forwards

 

$

25,678,591

 

$

20,920,285

 

$

16,167,791

Tax Credit Carry-forwards

 

 

3,535,863

 

 

3,035,384

 

 

2,404,490

Inventory Valuation Adjustment

 

 

982,160

 

 

104,450

 

 

675,830

Officer’s Compensation

 

 

 —

 

 

 —

 

 

86,670

Stock-based Compensation

 

 

 —

 

 

175,753

 

 

 —

Lease Obligation Liability

 

 

446,488

 

 

 —

 

 

 —

Other

 

 

263,348

 

 

207,327

 

 

108,734

Total Deferred Tax Assets

 

 

30,906,450

 

 

24,443,199

 

 

19,443,515

Deferred Tax Liabilities:

 

 

  

 

 

  

 

 

  

Income from Foreign Operations

 

 

 —

 

 

59,123

 

 

17,838

Lease Right of Use Asset

 

 

446,488

 

 

 —

 

 

 —

Other

 

 

14,335

 

 

22,069

 

 

11,789

Total Deferred Tax Liabilities

 

 

460,823

 

 

81,192

 

 

29,627

Net Deferred Tax Assets Before Valuation Allowance

 

$

30,445,627

 

$

24,362,007

 

$

19,413,888

Valuation Allowance

 

 

(30,445,627)

 

 

(24,362,007)

 

 

(19,413,888)

Net Deferred Tax Assets

 

$

 —

 

$

 —

 

$

 —