INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

The components of (loss) before income taxes consisted of the following:

The components of (loss) before income taxes consisted of the following:

The (benefit from) provision for income taxes for the years ended December 31, 2019 and 2018 is comprised of the following:

	Year Ending December 31,
	2019			2018
Current
Federal	$	–		$	–
State		9,790			10,911
Foreign		3,633			–
Total current (benefit) provision		13,423			10,911

Deferred
Federal		–			–
State		–			–
Foreign		(513,715	)		(78,432	)
Total deferred (benefit) provision		(513,715	)		(78,432	)

Total (benefit) provision	$	(500,292	)	$	(67,521	)

A reconciliation of the Federal statutory rate to the effective rate applicable to loss before income taxes is as follows:

	Year Ending December 31,
	2019			2018
Federal income tax at statutory rates		21.00	%		21.00	%
State income taxes, net of federal benefit		(0.05	)%		(0.10	)%
Nondeductible expenses		(1.00	)%		(1.58	)%
Foreign rate differential		0.45	%		0.36	%
Change in valuation allowance		(17.51	)%		(18.44	)%
Other		.64	%		(0.39	)%
Income tax benefit		3.53	%		0.85	%

	2019			2018
Inventory reserves	$	196,193		$	204,206
Accrued expenses		105,323			175,168
Net operating loss carry-forwards		10,079,317			7,122,576
Research and development credit		1,679,495			1,696,870
Stock-based compensation		581,053			215,797
Lease obligations		1,646,584			–
Depreciation		44,993			139,362
Total deferred tax assets		14,332,958			9,553,979
Right-of-use assets		(1,538,129	)		–
Intangibles		(921,807	)		(968,849	)
Total deferred tax liabilities		(2,459,936	)		(968,849	)

Net deferred tax assets before valuation allowance		11,873,022			8,585,130
Less valuation allowances		(12,339,348	)		(9,477,438	)
Net noncurrent deferred tax liabilities	$	(466,326	)	$	(892,308	)