DEFERRED TAXES

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 11.  DEFERRED TAXES

The components of net deferred tax assets are as follows:

		December 31,
		2018		2017
Net operating loss carryforwards	$	5,383,012	$	3,446,733
Equity-based instruments		5,004,624		3,648,787
Long-lived assets and other		555,138		427,779
Deferred tax asset valuation allowance		(10,942,774)		(7,523,299)
	$	–	$	–

A reconciliation of our income tax provision and the amounts computed by applying statutory rates to income before income taxes is as follows:

		Year ended December 31,
		2018		2017
Income tax benefit at statutory rate	$	(3,564,489)	$	(2,795,089)
State income tax benefit, net of Federal benefit		(620,849)		(251,213)
Equity-based instruments		(326,242)		(312,589)
Amortization of debt discount		1,044,210		391,513
Tax Cuts and Jobs Act rate change		–		991,223
Other		47,895		(242,781)
Valuation allowance		3,419,475		2,218,936
	$	–	$	–