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 Tax Disclosure [Abstract]  
Schedule of components of income tax provision

The income tax expense attributable to the Company’s loss before income taxes consisted of the following:

 

 

 

 

 

 

 

(In Thousands)

 

Years Ended December 31, 

 

    

2019

    

2018

Current Taxes

 

 

 

 

 

 

Federal

 

$

 —

 

$

 —

State

 

 

 —

 

 

 —

 

 

 

 —

 

 

 —

Deferred Taxes

 

 

  

 

 

  

Federal

 

 

(1,016)

 

 

(587)

State

 

 

(743)

 

 

(651)

Increase in valuation allowance

 

 

1,839

 

 

1,714

 

 

 

80

 

 

476

 

 

$

80

 

$

476

 

Schedule of effective income tax rate reconciliation

A reconciliation of the federal income tax statutory rate and the Company’s effective tax rate is as follows:

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

Years Ended December 31, 

 

 

2019

 

2018

Tax Rate Reconciliation

    

Percent

    

Amount

    

Percent

    

Amount

Federal income tax benefit at U.S. statutory rate

 

21.0

%  

$

(1,208)

 

21.0

%  

$

(817)

State taxes, net of federal benefit

 

10.2

%  

 

(587)

 

13.2

%  

 

(515)

Change in valuation allowance(1)

 

(32.0)

%  

 

1,839

 

(44.0)

%  

 

1,714

Permanent differences

 

(3.7)

%  

 

215

 

(6.3)

%  

 

247

Credits

 

2.7

%  

 

(156)

 

3.7

%  

 

(146)

Other

 

0.4

%  

 

(23)

 

0.2

%  

 

(7)

 

 

(1.4)

%  

$

80

 

(12.2)

%  

$

476

For 2018, this change is presented with tax reform consideration.

Schedule of deferred tax assets and liabilities

The Company’s deferred tax assets (liabilities) consisted of the following:

 

 

 

 

 

 

 

(In Thousands)

 

December 31, 

 

    

2019

    

2018

Deferred tax assets:

 

 

 

 

 

 

Deferred compensation

 

$

591

 

$

744

Intangible assets and amortization

 

 

3,761

 

 

4,023

Net operating loss carry-forwards

 

 

7,834

 

 

6,210

Accrued expenses

 

 

853

 

 

975

Allowance for doubtful accounts

 

 

32

 

 

22

Credits

 

 

668

 

 

481

Common stock warrant liability

 

 

402

 

 

69

Loan Fees

 

 

129

 

 

 —

Interest valuation

 

 

65

 

 

40

Interest limitation

 

 

1,712

 

 

1,362

Lease liabilities

 

 

4,345

 

 

 —

Charitable contribution carry-forward

 

 

125

 

 

97

Valuation allowance

 

 

(10,964)

 

 

(9,125)

 

 

 

9,553

 

 

4,898

Deferred tax liabilities:

 

 

  

 

 

  

Depreciation of fixed assets

 

 

(1,711)

 

 

(1,939)

Amortization of indefinite-lived intangibles

 

 

(2,803)

 

 

(2,232)

Prepaid expenses

 

 

(656)

 

 

(710)

Effect of state taxes on future federal returns

 

 

(785)

 

 

(629)

Right of use assets

 

 

(4,282)

 

 

 —

Other

 

 

(28)

 

 

(20)

 

 

 

(10,265)

 

 

(5,530)

 

 

$

(712)

 

$

(632)