| Schedule of reconciliation of the provision (benefit) |
The
following is a reconciliation of the provision (benefit) for income taxes to the amount compiled by applying the statutory federal
income tax rate to profit (loss) before income taxes is as follows for the years ended September 30, 2018 and 2017.
| |
|
2018 |
|
|
2017 |
|
| Federal income tax (benefit) at statutory rates |
|
|
24.25 |
% |
|
|
34.0 |
% |
| Stock-based compensation |
|
|
(0.22 |
)% |
|
|
(3.46 |
)% |
| Rate change |
|
|
(81.08 |
)% |
|
|
— |
|
| Change in valuation allowance |
|
|
58.95 |
% |
|
|
(29.29 |
)% |
| True-ups and other adjustments |
|
|
(0.09 |
)% |
|
|
(1.27 |
)% |
| State tax benefit |
|
|
(1.82 |
)% |
|
|
(0.02 |
)% |
| Total |
|
|
(0.02 |
)% |
|
|
(0.04 |
)% |
|
| Schedule of provision (benefit) for income taxes |
The
provision for income taxes consisted of the following for the years ended September 30, 2018 and 2017:
| |
|
2018 |
|
|
2017 |
|
| Current: |
|
|
|
|
|
|
| Federal: |
|
$ |
— |
|
|
$ |
— |
|
| State: |
|
|
1,900 |
|
|
|
2,600 |
|
| Deferred: |
|
|
|
|
|
|
|
|
| Federal: |
|
|
129,700 |
|
|
|
2,082,900 |
|
| State: |
|
|
(246,500 |
) |
|
|
(840,600 |
) |
| Change in valuation allowance |
|
|
(116,800 |
) |
|
|
(1,242,300 |
) |
| Total |
|
|
1,900 |
|
|
|
2,600 |
|
| |
|
2018 |
|
|
2017 |
|
| Current: |
|
|
|
|
|
|
| Federal: |
|
$ |
— |
|
|
$ |
— |
|
| State: |
|
|
1,900 |
|
|
|
2,600 |
|
| Total current |
|
|
1,900 |
|
|
|
2,600 |
|
| Deferred: |
|
|
|
|
|
|
|
|
| Federal: |
|
|
(5,819,600 |
) |
|
|
2,082,900 |
|
| State: |
|
|
(246,500 |
) |
|
|
(840,600 |
) |
| Total deferred |
|
|
(6,066,100 |
) |
|
|
1,242,300 |
|
| Change in valuation allowance |
|
|
6,066,100 |
|
|
|
(1,242,300 |
) |
| Total |
|
$ |
1,900 |
|
|
$ |
2,600 |
|
|
| Schedule of deferred taxes |
Temporary
differences between the financial statement carrying amounts and bases of assets and liabilities that give rise to significant
portions of deferred taxes relate to the following at September 30, 2018 and 2017:
| |
|
2018 |
|
|
2017 |
|
| Deferred income tax assets: |
|
|
|
|
|
|
| Net operating loss carryforward |
|
$ |
13,921,773 |
|
|
$ |
19,024,793 |
|
| Deferred interest, consulting and compensation liabilities |
|
|
2,850,840 |
|
|
|
3,850,567 |
|
| Deferred income tax assets – other |
|
|
155,517 |
|
|
|
118,793 |
|
| |
|
|
16,928,130 |
|
|
|
22,994,153 |
|
| Deferred income tax liabilities—other |
|
|
— |
|
|
|
— |
|
| Deferred income tax asset—net before valuation allowance |
|
|
16,928,130 |
|
|
|
22,994,153 |
|
| Valuation allowance |
|
|
(16,928,130 |
) |
|
|
(22,994,153 |
) |
| Deferred income tax asset—net |
|
$ |
— |
|
|
$ |
— |
|
|