Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 10. Income Taxes

Significant components of deferred tax assets were as follows:

	As of December 31,
	2019			2018
U.S. federal tax loss carry–forward	$	15,227		$	12,705
U.S. State tax loss carry–forward		262			1,052
Equity based compensation		7,655			7,764
Fixed assets, intangible assets and goodwill		49			2,224
Long-term investments		-			969
Total deferred tax assets		23,193			24,714
Less: valuation allowance		(23,193	)		(24,714	)
Net deferred tax asset	$	—		$	—

As of December 31, 2019, the Company had the following tax attributes:

	Amount		Begins to expire
U.S. federal net operating loss carry–forwards	$	72,509		Fiscal 2022
U.S. State net operating loss carry–forwards		13,267		Fiscal 2030

As it is not more likely than not that the resulting deferred tax benefits will be realized, a full valuation allowance has been recognized for such deferred tax assets. For the year ended December 31, 2019, the valuation allowance decreased by $1,521. Federal and state laws impose substantial restrictions on the utilization of tax attributes in the event of an “ownership change,” as defined in Section 382 of the Internal Revenue Code. As of December 31, 2019, the Company performed a high-level review of its changes in ownership and determined that a change of control event likely occurred under Section 382 of the Internal Revenue Code and the Company’s net operating loss carryforwards are likely to be limited.

The provision for/ (benefit from) income tax differs from the amount computed by applying the statutory federal income tax rate to income before the provision for/(benefit from) income taxes. The sources and tax effects of the differences are as follows:

	For the Years Ended December 31,
	2019			2018
Expected Federal Tax		(21.0	)%		(21.0	)%
State Tax (Net of Federal Benefit)		(2.0	)		(2.4	)
Accretion of notes payable discount		13.8			0.9
True up of prior year deferred tax assets		16.1			(3.2	)
True up of state tax loss carry–forward		8.8
Other		1.6			(1.3	)
Change in valuation allowance		(17.3	)		27.0
Effective rate of income tax		-	%		-	%

The Company files income tax returns in the U.S. federal jurisdiction, New York State, North Carolina and New Jersey jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non–U.S. income tax examinations by tax authorities for years before 2014.