Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2016 |
|---|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Schedule of Income before Income Tax, Domestic and Foreign |
The breakout of the loss from continuing
operations before income taxes between domestic and foreign operations is below:
| |
|
2016 |
|
|
2015 |
|
| Income (Loss) from continuing operations before income taxes |
|
|
|
|
|
|
|
|
| United States |
|
$ |
(4,155,057 |
) |
|
$ |
(7,828,941 |
) |
| Foreign |
|
|
7,486 |
|
|
|
(65,346 |
) |
| |
|
$ |
(4,147,571 |
) |
|
$ |
(7,894,285 |
) |
|
| Schedule of Components of Income Tax Expense (Benefit) |
The Income Tax (benefit) provision from continuing
operations consists of the following:
| Foreign |
|
|
|
|
|
|
|
|
| Current |
|
$ |
66,680 |
|
|
$ |
93,037 |
|
| Deferred |
|
|
55,670 |
|
|
|
135,280 |
|
| Change in Valuation Allowance |
|
|
(55,670 |
) |
|
|
(135,280 |
) |
| U.S. Federal |
|
|
|
|
|
|
|
|
| Current |
|
|
- |
|
|
|
- |
|
| Deferred |
|
|
(1,614,833 |
) |
|
|
(1,838,235 |
) |
| Change in Valuation Allowance |
|
|
1,734,224 |
|
|
|
1,922,815 |
|
| State & Local |
|
|
|
|
|
|
|
|
| Current |
|
|
- |
|
|
|
- |
|
| Deferred |
|
|
(167,597 |
) |
|
|
(216,263 |
) |
| Change in Valuation Allowance |
|
|
179,989 |
|
|
|
226,214 |
|
| |
|
$ |
198,463 |
|
|
$ |
187,568 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The (benefit) provision for income tax, from
continuing operations, using statutory U.S. federal tax rate of 34% is reconciled to the company’s effective tax rate as
follows:
| |
|
2016 |
|
|
2015 |
|
| Computed “expected” income tax benefit |
|
$ |
(1,410,174 |
) |
|
$ |
(2,684,057 |
) |
| State income taxes, net of federal benefit |
|
|
(146,357 |
) |
|
|
(315,771 |
) |
| Foreign rate differential |
|
|
- |
|
|
|
87,657 |
|
| Prior year true-ups other deferred tax balances |
|
|
(337,713 |
) |
|
|
322,936 |
|
| Permanent Items |
|
|
27,219 |
|
|
|
11,698 |
|
| Capital loss expiration |
|
|
- |
|
|
|
333,837 |
|
| Convertible Debt Issuances and conversions |
|
|
- |
|
|
|
482,018 |
|
| Foreign Tax Expense |
|
|
66,680 |
|
|
|
93,037 |
|
| Other |
|
|
140,265 |
|
|
|
(157,536 |
) |
| Change in valuation allowance |
|
|
1,858,543 |
|
|
|
2,013,749 |
|
| Effective Rate |
|
$ |
198,463 |
|
|
$ |
187,568 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
Major components of deferred tax assets for
continuing operations at December 31, 2016 and 2015 were:
| |
|
2016 |
|
|
2015 |
|
| Net operating loss carryforwards |
|
$ |
9,291,804 |
|
|
$ |
8,612,906 |
|
| Capital loss carryforwards |
|
|
152,772 |
|
|
|
154,700 |
|
| Section 1231 loss carryforwards |
|
|
111,506 |
|
|
|
15,080 |
|
| Charitable contribution carryforwards |
|
|
33,998 |
|
|
|
16,815 |
|
| Derivative liability |
|
|
0 |
|
|
|
468,011 |
|
| Other |
|
|
260,086 |
|
|
|
190,551 |
|
| Restaurant startup costs |
|
|
89,159 |
|
|
|
137,893 |
|
| Accrued Expenses |
|
|
686,321 |
|
|
|
36,182 |
|
| Deferred occupancy liabilities |
|
|
261,181 |
|
|
|
290,500 |
|
| Total deferred Tax Assets |
|
|
10,886,827 |
|
|
|
9,922,638 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment |
|
|
(765,187 |
) |
|
|
(978,583 |
) |
| Convertible debt |
|
|
(17,611 |
) |
|
|
(811,177 |
) |
| Investments |
|
|
(80,246 |
) |
|
|
(90,200 |
) |
| Intangibles and Goodwill |
|
|
(536,891 |
) |
|
|
(282,547 |
) |
| Total deferred tax liabilities |
|
|
(1,399,935 |
) |
|
|
(2,162,507 |
) |
| |
|
|
|
|
|
|
|
|
| Net deferred tax assets |
|
|
9,486,892 |
|
|
|
7,760,131 |
|
| Valuation Allowance |
|
|
(10,972,446 |
) |
|
|
(9,113,900 |
) |
| |
|
$ |
(1,485,554 |
) |
|
$ |
(1,353,771 |
) |
|