INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax (Benefit) Expense

The components of income tax (benefit) expense for the years ended December 31, 2019 and 2018 are as follows:



	December 31, 2019			December 31, 2018
Current federal tax (expense)/benefit	$	(68,606	)	$	(137,212	)
Deferred federal tax (expense)/benefit	68,606			137,212
Total federal tax (expense)/benefit	$	—		$	—

Schedule of Reconciliation by Applying U.S. Federal Income Tax Rate to Pretax Income from Continuing Operations and Income Tax Expense Presented

Reconciliation between the amount determined by applying the U.S. federal income tax rate of 21% to pretax income from continuing operations and income tax expense presented in the accompanying consolidated statements of operations was as follows for the years ended December 31, 2019 and 2018:



	December 31, 2019			December 31, 2018
Statutory tax on book income	$	(1,152,000	)	$	(417,000	)
Permanent differences	139,000			114,000
Change in derivative liability	102,000			(160,000		)
Myrtle Grove transaction gain	210,000			—
Change in valuation allowance	1,344,000			967,000
Prior year return true up	(643,000		)	(504,000		)
Income tax expense (benefit)	$	—		$	—

Schedule of Deferred Tax Assets and Liabilities

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are presented below:



	December 31, 2019			December 31, 2018
Deferred tax assets:
Alternative minimum tax credits	$	69,000		$	137,000
Accrued bonus and stock based compensation	386,000			358,000
Basis of intangible assets	1,687,000			1,368,000
Bad debt reserve	85,000			175,000
Contribution carryover	38,000			26,000
Interest expense carryforward	487,000			190,000
Net operating loss carry forwards	13,682,000			12,500,000
Less valuation allowance	(13,453,000		)	(12,109,000		)
Total deferred tax assets	$	2,981,000		$	2,645,000

	December 31, 2019			December 31, 2018
Deferred tax liabilities:
Basis of fixed assets	$	(2,788,000	)	$	(2,444,000	)
Contingent liability	—			3,000
Partnership income	(124,000		)	(67,000		)
Total deferred tax liabilities	$	(2,912,000	)	$	(2,508,000	)

Net deferred tax assets	$	69,000		$	137,000