Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

v3.10.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
NOTE 13 – INCOME TAXES
 
 
For the years ended December 31, 2018, 2017 and 2016, components of our provision for income taxes are as follows:
 
Provision for Income Taxes
 
2018
 
 
2017
 
 
2016
 
Deferred taxes
 
$
3,445,721
  
 
$
10,416,171
  
 
$
(19,987,585
)
Provision for (Benefit from) Income Taxes
 
$
3,445,721
  
 
$
10,416,171
  
 
$
(19,987,585
)
 
The following is a reconciliation of income taxes computed using the U.S. federal statutory rate to the provision for income taxes:
  
Rate Reconciliation
 
2018
 
 
2017
 
 
2016
 
Tax at federal statutory rate 
 
$
2,613,551
  
 
$
4,194,556
  
 
$
(19,592,592
)
Non-deductible expenses
 
 
3,197
  
 
 
6,158
  
 
 
2,558
  
Excess tax benefit from stock option exercises
 
 
828,973
  
 
 
(453,217
)
 
 
15,055
  
Adjust prior estimates to tax return
 
 
-
  
 
 
(58,766
)
 
 
167,526
  
States taxes, net of Federal benefit
 
 
-
  
 
 
124,200
  
 
 
(580,132
)
Effect of departure from State of Kansas
 
 
-
  
 
 
(350,059
)
 
 
-
  
Adjustment for change in future effective tax rate (1)
 
 
-
  
 
 
6,953,299
  
 
 
-
  
Provision for (Benefit from) Income Taxes
 
$
3,445,721
  
 
$
10,416,171
  
 
$
(19,987,585
)
 
(1) The enactment of the Tax Cuts and Jobs Act provided for a decrease in the corporate tax rate to 21% from 35%, resulting in a net $6.95 million reduction to our net deferred tax asset as of December 31, 2017.
  
The net deferred taxes consisted of the following at December 31, 2018 and 2017:
 
 
Deferred Taxes:
 
2018
 
 
2017
 
Deferred tax liabilities
 
 
 
 
 
 
 
 
Property and equipment
 
$
33,888,806
  
 
$
27,563,290
  
 
 
 
 
 
 
 
 
 
Deferred tax assets
 
 
 
 
 
 
 
 
Stock-based compensation
 
 
3,734,911
  
 
 
6,667,643
  
Operating loss and IDC carryforwards
 
 
37,940,374
  
 
 
32,127,847
  
Deferred tax assets
 
 
41,675,285
  
 
 
38,795,490
  
Net deferred income tax asset
 
$
(7,786,479
)
 
$
(11,232,200
)
 
As of December 31, 2018, the Company had net operating loss carry forwards for federal income tax reporting purposes of approximately $180.7 million which, if unused, will begin to expire in 2027 and fully expire in 2038.