| Note 9 - Income Taxes |
The Company has estimated net operating losses for the years ended December 31, 2019 and 2018 of $17.3 million and $12.4 million, respectively, available to offset taxable income in future years.
The significant components of deferred income taxes and assets as at December 31, 2019 are as follows:
Net Deferred Tax Liability |
|
|
|
|
|
|
Excess of tax over book depreciation and amortization |
|
|
(3,901 |
) |
|
|
(10,761 |
) |
ROU Asset |
|
|
(41,250 |
) |
|
|
|
|
Lease Liability |
|
|
43,896 |
|
|
|
|
|
Prepaid expenses |
|
|
- |
|
|
|
- |
|
Allowance for doubtful accounts |
|
|
- |
|
|
|
- |
|
Accrued expenses |
|
|
1,154 |
|
|
|
1,154 |
|
Stock-based compensation |
|
|
- |
|
|
|
- |
|
Net Operating Losses carry-forward |
|
|
17,326,179 |
|
|
|
12,437,561 |
|
Research and development tax credits |
|
|
231,243 |
|
|
|
337,507 |
|
Gross deferred tax assets |
|
|
17,557,321 |
|
|
|
12,765,461 |
|
Valuation allowance |
|
|
(17,557,321 |
) |
|
|
(12,765,461 |
) |
|
|
|
|
|
|
|
|
|
Net deferred tax asset |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Change in Valuation Allowance |
|
|
(4,791,860 |
) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
Summary Rate Reconciliation |
|
|
|
|
|
|
Federal statutory rate |
|
|
21.0 |
|
|
|
21.0 |
|
State income taxes, net of federal benefit |
|
|
- |
|
|
|
- |
|
Permanent Differences |
|
|
4.1 |
|
|
|
(15.1 |
) |
Stock based compensation |
|
|
(2.4 |
) |
|
|
(3.2 |
) |
Federal Research & Development Credits |
|
|
0.6 |
|
|
|
0.4 |
|
Foreign taxes |
|
|
6.7 |
|
|
|
6.2 |
|
Federal Deferred Rate Decrease |
|
|
(0.2 |
) |
|
|
- |
|
Increase/(decrease) in valuation reserve |
|
|
(29.8 |
) |
|
|
(9.3 |
) |
Total |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Losses - United States |
|
|
18,214,929 |
|
|
|
|
|
Net Operating Losses - Foreign |
|
|
50,464,000 |
|
|
|
|
|
Credit Carryforward - United States |
|
|
- |
|
|
|
|
|
Credit Carryforward - Foreign |
|
|
231,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in Valuation Allowance |
|
|
4,791,860 |
|
|
|
|
|
|