Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Income Tax (Benefit) Expense

Income tax (benefit) expense for respective periods noted is as follows:

 

    Year Ended  
    December 31, 2018     December 31, 2017  
             
Current:                
Federal, state, and local   $ —     $ —  
Deferred:                
Federal     (2,990,653 )     (105,093 )
State and local     (1,825,988 )     (471,522 )
      (4,816,641 )     (576,616 )
Less: Valuation allowance reserve     4,816,641       576,616  
    $ —     $ —  

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the federal statutory income tax rate to the effective income tax rate for respective periods noted is as follows:

 

    Year Ended  
    December 31,2018     December 31,2017  
             
U.S. federal statutory rate     21.0 %     35.0 %
U.S. state and local income taxes, net of federal tax benefit     8.3 %     5.6 %
Permanent differences     (2.8 )%     (2.3 )%
Tax credits     — %     1.2 %
Change in U.S. federal tax law     — %     (19.4 )%
Valuation allowance     (26.5 )%     (20.1 )%
Effective tax rate     0.0 %     0.0 %

Schedule of Deferred Tax Assets and Liabilities

The approximate tax effects of temporary differences which give rise to the net deferred tax assets for respective periods noted are as follows:

 

    Year Ended  
    December 31,2018     December 31,2017  
Deferred tax assets:                
Net operating loss   $ 7,155,358     $ 4,309,231  
Non-deductible interest expense     247,938       —  
Debt issue costs     426,817       —  
Stock-based compensation expense     586,164       201,950  
Patent licenses     15,826       17,077  
Research and development tax credit carryforward     91,535       194,345  
Accrued expenses     12,123       8,981  
Section 195 deferred start-up costs     24,286       26,445  
Deferred tax assets     8,560,047       4,758,029  
                 
Deferred tax liabilities:                
Discount on debt     —       (1,014,484 )
Depreciation     (2,766 )     (2,904 )
Deferred tax liabilities     (2,766 )     (1,017,388 )
                 
Deferred tax assets, net of deferred tax liabilities     8,557,281       3,740,641  
Less: valuation allowance     (8,557,281 )     (3,740,641 )
Deferred tax assets, net after valuation allowance   $ —     $ —