Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
Income tax provision (benefit) reported in the consolidated statements of operations is comprised of the following (rounded to hundreds):
December 31,
2019 2018
Current provision (benefit):
Federal $ —    $ —   
State, net of state tax credits 47,200    39,300   
Total current provision (benefit) 47,200    39,300   
Deferred provision (benefit):
Federal 800    (90,000)  
State 1,000    13,000   
Total deferred provision (benefit) 1,800    (77,000)  
Total income tax provision (benefit) $ 49,000    $ (37,700)  
Schedule of Deferred Tax Assets and Liabilities The following are the components of the Company’s deferred tax assets (liabilities) for federal and state income taxes (rounded to hundreds):
December 31,
2019 2018
(as adjusted)  
Deferred income tax assets:
Accrued expenses $ 515,800    $ 361,100   
Deferred revenue 4,435,400    3,092,500   
Deferred rent —    237,900   
Lease abandonment —    96,500   
Lease liability 3,782,800    —   
Goodwill - component 2 55,300    52,500   
Restricted stock compensation 3,900    —   
Nonqualified stock options 198,900    184,400   
Net operating loss carryforwards 3,585,700    6,175,600   
Tax credits 33,800    14,000   
Charitable contribution carryover —    15,500   
Asset basis difference related to property and equipment 214,000    458,600   
Intangibles 595,800    435,900   
Total deferred income tax assets 13,421,400    11,124,500   
Deferred income tax liabilities:
Lease right-of-use asset (3,267,900)   —   
Deferred franchise costs (406,500)   (574,100)  
Goodwill - component 1 (245,500)   (194,700)  
Restricted stock compensation —    (30,800)  
Total deferred income tax liabilities (3,919,900)   (799,600)  
Valuation allowance (9,591,400)   (10,401,600)  
Net deferred tax liability $ (89,900)   $ (76,700)  
Schedule of Effective Income Tax Rate Reconciliation
The following is a reconciliation of the statutory federal income tax rate applied to pre-tax accounting net income, compared to the income tax provision (benefit) in the consolidated statement of operations (rounded to hundreds):
  For the Years Ended December 31,
  2019 2018 (as adjusted)
  Amount Percent Amount Percent
Expected federal tax expense (benefit) $ 731,600    21.0  % $ 22,900    21.0  %
State tax provision, net of federal benefit 315,800    9.1  % (63,600)   (58.4) %
Change in valuation allowance (810,200)   (23.3) % 51,600    47.4  %
Other permanent differences 41,700    1.2  % 13,200    12.1  %
Stock compensation (232,600)   (6.7) % (40,800)   (37.4) %
Bargain purchase gain (5,100)   (0.1) % (16,100)   (14.8) %
Return to provision adjustments 7,800    0.2  % (4,900)   (4.5) %
Provision (benefit) $ 49,000    1.4  % $ (37,700)   (34.6) %