Note 10 - Income Taxes
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
NOTE
10
- INCOME TAXES
 
   Income tax (provision) benefit consisted of the following for the years ended
December 31, 2019
and
2018
as follows:
 
   
December 31,
    
December 31,
  
   
2019
    
2018
  
Current:
                
State
   $
(79
)
   $
(29
)
Total current expense
    
(79
)
    
(29
)
                 
Deferred:
                
Federal
    
8,981
      
3,641
  
State
    
4,378
      
2,264
  
Change in valuation allowance
    
(13,359
)
    
(5,905
)
Total deferred expense
    
-
      
-
  
                 
Total income tax provision
   $
(79
)
   $
(29
)
 
The income tax benefit (provision) differs from the amount computed at federal statutory rates for the years ended
December 31, 2019
and
2018
as follows:
 
Effective rate reconciliation
  
 
 
 
  
 
 
 
Computed Federal income tax benefit (expense) at the statutory rate
   $
9,329
     $
4,280
  
                 
Interest expense
    
(151
)
    
(264
)
Equity-based expenses
    
751
      
383
  
State income taxes, net of federal benefit
    
3,141
      
1,363
  
Valuation allowance
    
(13,359
)
    
(5,905
)
Tax Rate change
    
(20
)
    
159
  
Other
    
230
      
(45
)
                 
Income tax provision
   $
(79
)
   $
(29
)
 
Deferred tax assets (liabilities) are comprised of the following at
December 31, 2019
and
2018:
 
Deferred tax assets/(liabilities)
  
 
 
 
  
 
 
 
Deferred tax assets:
                
Net operating loss carryforwards   $
58,301
     $
53,167
  
Accruals and reserves
    
6,425
      
4,011
  
Depreciation and amortization
    
5,482
      
1,383
  
Indefinite-lived intangibles
    
2,226
      
271
  
Deferred revenue    
-
      
418
  
Other    
2,359
      
2,184
  
Total deferred tax assets
    
74,793
      
61,434
  
                 
Less valuation allowance
    
(74,793
 )    
(61,434
 )
                 
Net deferred tax assets
   $
-
     $
-
  
 
As a result of recurring operating losses, we have recorded a full valuation allowance against our net deferred income tax assets as of
December 31, 2019
and
2018,
as management was unable to conclude that it is more likely than
not
that the deferred income tax assets will be realized. During the years ended
December 31, 2019
and
2018,
the valuation allowance on deferred income tax assets increased by
$13,359
and increased by
$5,905,
respectively.
 
We had federal net operating loss carryforwards of approximately
$237,000
and state net operating loss carryforwards of approximately
$170,000
at
December 31, 2019,
which are available to reduce future federal and state taxable income. The federal and state net operating loss carryforwards expire from
2022
through
2038.
If substantial changes in our ownership should occur, there would be an annual limitation of the amount of the net operating loss carryforwards which could be utilized.
 
We perform a review of our material tax positions in accordance with recognition and measurement standards established by authoritative accounting literature, which requires a company to determine whether it is more likely than
not
that a tax position will be sustained upon examination based upon the technical merits of the position.  If the more-likely-than-
not
threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.  Based upon our review and evaluation, during the years ended
December 31, 2019
and
2018,
we concluded that we had
no
unrecognized tax benefit that would affect our effective tax rate if recognized.
 
The Company is subject to audit by the IRS and various states for tax years dating back to
2014.
No
federal or state tax returns are currently under audit.