Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities is as follows:

	December 31,		December 31,
	2017		2016
Deferred tax assets:
Net operating loss carry forwards	$	513,000	$	1,739,000
Deferred revenue		1,033,000		826,000
Non-qualified stock option expense		410,000		540,000
Investment in MREC		28,000		-
Reserves, accruals and other		93,000		133,000
Tax intangible assets and accumulated depreciation/amortization		634,000		1,187,000
Total deferred tax assets		2,711,000		4,425,000
Less: Valuation allowance		-		4,425,000
Net deferred tax assets	$	2,710,000	$	-

Schedule of Significant Component of Income Tax Provision

Significant components of the (provision) benefit for income tax as follows:

	December 31,			December 31,
	2017			2016
Current	$	205,000		$	103,000
Deferred		1,714,000			425,000
Change in valuation allowance		(4,425,000	)		(425,000	)
Provision for income taxes	$	(2,505,000	)	$	103,000

Schedule of Reconciliation of Income Tax Rate

The Company is subject to federal and state taxes. A reconciliation of the Company’s effective income tax rate to the federal statutory rate is as follows:

	December 31,			December 31,
	2017			2016
Federal income tax benefit at the statutory rate	$	257,000		$	697,000
State income taxes, net of federal benefit		205,000			103,000
Permanent differences		20,000			(16,000	)
Tax return true-ups and other		61,000			(256,000	)
Change in federal income tax rates		1,376,000			-
Change in valuation allowance		(4,425,000	)		(425,000	)
Provision for income taxes	$	(2,505,000	)	$	103,000