Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Components of Income Tax Expense (Benefit) |
The income tax benefit for the years ended
December 31, 2019 and 2018 consists of the following:
| |
|
|
2019 |
|
|
|
2018 |
|
| Foreign |
|
|
|
|
|
|
|
|
| Current |
|
$ |
48,187 |
|
|
$ |
1,803 |
|
| Deferred |
|
|
653,790 |
|
|
|
18,216 |
|
| Change in Valuation Allowance |
|
|
(652,679 |
) |
|
|
(8,010 |
) |
| U.S. Federal |
|
|
|
|
|
|
|
|
| Current |
|
|
- |
|
|
|
- |
|
| Deferred |
|
|
(4,683,141 |
) |
|
|
(1,305,934 |
) |
| Change in Valuation Allowance |
|
|
4,662,699 |
|
|
|
291,721 |
|
| State & Local |
|
|
|
|
|
|
|
|
| Current |
|
|
- |
|
|
|
- |
|
| Deferred |
|
|
(272,656 |
) |
|
|
(99,938 |
) |
| Change in Valuation Allowance |
|
|
317,526 |
|
|
|
400,918 |
|
| |
|
$ |
73,726 |
|
|
$ |
(701,224 |
) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
The benefit for income tax using statutory
U.S. federal tax rate of 21% is reconciled to the Company’s effective tax rate as of December 31, 2019 and 2018 is as follows:
| |
|
2019 |
|
|
2018 |
|
| Computed “expected” income tax benefit |
|
$ |
(3,647,623 |
) |
|
$ |
(1,659,103 |
) |
| State income taxes, net of federal benefit |
|
|
(367,974 |
) |
|
|
(99,938 |
) |
| Noncontrolling interest |
|
|
185,031 |
|
|
|
87,389 |
|
| Prior year true-ups other deferred tax balances |
|
|
(323,763 |
) |
|
|
- |
|
| Permanent Items |
|
|
37,480 |
|
|
|
147,602 |
|
| Capital loss expiration |
|
|
- |
|
|
|
50,220 |
|
| Foreign Tax Expense |
|
|
48,187 |
|
|
|
1,803 |
|
| Other |
|
|
59,421 |
|
|
|
86,174 |
|
| Change in valuation allowance |
|
|
4,082,967 |
|
|
|
684,629 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
Deferred income taxes reflect the net tax effect
of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for
tax purposes. Major components of deferred tax assets at December 31, 2019 and 2018 were:
| |
|
2019 |
|
|
2018 |
|
| Net operating loss carryforwards |
|
$ |
13,689,074 |
|
|
$ |
11,106,000 |
|
| Fixed assets and intangibles |
|
|
469,152 |
|
|
|
- |
|
| Section 1231 loss carryforwards |
|
|
103,230 |
|
|
|
79,869 |
|
| Charitable contribution carryforwards |
|
|
23,731 |
|
|
|
23,770 |
|
| Section 163(j) limitation |
|
|
648,074 |
|
|
|
479,264 |
|
| Other |
|
|
45,801 |
|
|
|
91,764 |
|
| Restaurant startup expenses |
|
|
- |
|
|
|
23,369 |
|
| Accrued expenses |
|
|
946,040 |
|
|
|
159,623 |
|
| Deferred occupancy liabilities |
|
|
37,044 |
|
|
|
128,936 |
|
| Revenue recognition |
|
|
240,333 |
|
|
|
243,059 |
|
| Total deferred tax assets |
|
|
16,202,479 |
|
|
|
12,335,654 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment |
|
|
- |
|
|
|
- |
|
| Other asset & liability impairment |
|
|
- |
|
|
|
(122,326 |
) |
| Investments |
|
|
(328,825 |
) |
|
|
(204,863 |
) |
| Intangibles and Goodwill |
|
|
- |
|
|
|
(432,572 |
) |
| Total deferred tax liabilities |
|
|
(328,825 |
) |
|
|
(759,761 |
) |
| |
|
|
|
|
|
|
|
|
| Net deferred tax assets |
|
|
15,873,654 |
|
|
|
11,575,893 |
|
| Valuation allowance |
|
|
(15,975,958 |
) |
|
|
(11,652,658 |
) |
| |
|
$ |
(102,304 |
) |
|
$ |
(76,765 |
) |
|