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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense
Income tax (benefit)/expense from continuing operations consisted of the following for the periods indicated:
 
Years ended December 31,
 
2019
 
2018
Current:
 
 
 
Federal
$
1,466,770

 
$
(44,727
)
State
227,912

 
92,545

Deferred federal
(2,849,371
)
 

Deferred state
(499,661
)
 

Income tax (benefit)/expense
$
(1,654,350
)
 
$
47,818

Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities consist of the following components:
 
December 31, 2019
 
December 31, 2018
 
 
Long-Term
 
 
Long-Term
Bad debt and inventory reserve
 
$
376,331

 
 
$
332,721

Inventory adjustment
 

 
 
(21,785
)
UNICAP
 
4,828

 
 
2,804

Deferred revenue
 
130,058

 
 
115,676

ASC842 Lease Accounting (DTA)
 
796,864

 
 
288,017

ASC842 Lease Accounting (DTL)
 
(544,539
)
 
 

Depreciation and amortization
 
(2,134,569
)
 
 
(838,540
)
Net operating loss carryforwards- Luna
 
349,421

 
 
349,421

Net operating loss carryforwards- API
 
1,169,671

 
 
1,265,538

Net operating loss carryforwards - state
 
150,050

 
 
179,149

Net operating loss carryforwards- Canada
 
10,503

 
 
10,503

Accrued liabilities
 
594,450

 
 
394,118

Deferred compensation
 
294,190

 
 
216,944

Stock-based compensation
 
373,658

 
 
803,757

Restricted stock
 
102,741

 
 
60,681

State bonus
 
33,791

 
 
44,861

Performance based compensation
 
9,499

 
 

Transaction costs
 
58,540

 
 
63,668

Total
 
1,775,487

 
 
3,267,533

Valuation allowance
 
(359,924
)
 
 
(3,267,533
)
Net deferred tax asset
 
$
1,415,563

 
 
$

Reconciliation of Income Tax Benefit (Expense)
The (benefit)/expense from income taxes from continuing operations differs from the amount computed by applying the federal statutory income tax rate to our loss from continuing operations before income taxes as follows for the periods indicated:
 
 
Years ended December 31,

 
2019
 
2018
Income tax expense at federal statutory rate
 
21.00
 %
 
21.00
 %
State taxes, net of federal tax effects
 
(8.67
)%
 
 %
Change in valuation allowance
 
(67.39
)%
 
(27.65
)%
Incentive stock options
 
(1.75
)%
 
(1.05
)%
Provision to return adjustments
 
7.26
 %
 
21.24
 %
Meals and entertainment
 
0.50
 %
 
0.97
 %
AMT credit
 
 %
 
(9.83
)%
Other permanent differences
 
4.20
 %
 
(0.88
)%
Income tax (benefit)/expense
 
(44.85
)%
 
3.80
 %