| 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 |
|
$ |
— |
|
|
$ |
— |
|
|