Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
Income Tax Disclosure [Abstract] |
|
Schedule of Income Tax Expense |
The income tax expense for the years ended December
31, 2020 and 2019 consists of the following:
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
Foreign |
|
|
|
|
|
|
|
|
Current |
|
$ |
— |
|
|
$ |
48,187 |
|
Deferred |
|
|
(36,443) |
|
|
|
653,790 |
|
Change in valuation allowance |
|
|
36,443 |
|
|
|
(652,679 |
) |
U.S. Federal |
|
|
|
|
|
|
|
|
Current |
|
|
— |
|
|
|
— |
|
Deferred |
|
|
5,765,837 |
|
|
|
(4,683,141 |
) |
Change in valuation allowance |
|
|
(5,815,197 |
) |
|
|
4,662,699 |
|
State and local |
|
|
|
|
|
|
|
|
Current |
|
|
— |
|
|
|
— |
|
Deferred |
|
|
(103,357 |
) |
|
|
(272,656 |
) |
Change in valuation allowance |
|
|
159,222 |
|
|
|
317,526 |
|
|
|
$ |
6,505 |
|
|
$ |
73,726 |
|
|
Schedule of Effective Income Tax Rate Reconciliation |
The income tax expense using statutory U.S. federal
tax rate of 21% is reconciled to the Company’s effective tax rate as of December 31, 2020 and 2019 is as follows:
|
|
2020 |
|
|
2019 |
|
Computed “expected” income tax benefit |
|
$ |
(4,325,270 |
) |
|
$ |
(3,647,623 |
) |
State income taxes, net of federal benefit |
|
|
(57,543 |
) |
|
|
(367,974 |
) |
Non-controlling interest |
|
|
— |
|
|
|
185,031 |
|
Prior year true-ups other deferred tax balances |
|
|
24,549 |
|
|
|
(323,763 |
) |
Permanent items |
|
|
2,500,281 |
|
|
|
37,480 |
|
Foreign tax expense |
|
|
— |
|
|
|
48,187 |
|
Rate change |
|
|
(142,085 |
) |
|
|
— |
|
Other |
|
|
(248,955 |
) |
|
|
59,421 |
|
Adjustment to NOLs due to Merger |
|
|
8,350,360 |
|
|
|
— |
|
Change in valuation allowance |
|
|
(6,094,832 |
) |
|
|
4,082,967 |
|
|
|
$ |
6,505 |
|
|
$ |
73,726 |
|
|
Summary of Major Components of Deferred Tax Assets |
Major components of deferred tax assets at December
31, 2020 and 2019 were:
|
|
2020 |
|
|
2019 |
|
Net operating loss carryforwards |
|
$ |
6,802,404 |
|
|
$ |
13,099,412 |
|
Capital loss carryforwards |
|
|
369,447 |
|
|
|
— |
|
Fixed assets and intangibles |
|
|
1,118,850 |
|
|
|
1,058,814 |
|
Section 1231 loss carryforwards |
|
|
39,491 |
|
|
|
103,230 |
|
Charitable contribution carryforwards |
|
|
12,474 |
|
|
|
23,731 |
|
Section 163(j) limitation |
|
|
789,007 |
|
|
|
648,074 |
|
Other |
|
|
— |
|
|
|
45,801 |
|
Restaurant startup expenses |
|
|
5,293 |
|
|
|
— |
|
Accrued expenses |
|
|
915,177 |
|
|
|
946,040 |
|
Deferred occupancy liabilities |
|
|
— |
|
|
|
37,044 |
|
Contract liabilities |
|
|
226,671 |
|
|
|
240,333 |
|
Total deferred tax assets |
|
|
10,278,814 |
|
|
|
16,202,479 |
|
|
|
|
|
|
|
|
|
|
Deferred occupancy liabilities |
|
|
(38,390 |
) |
|
|
— |
|
Investments |
|
|
(202,307 |
) |
|
|
(328,825 |
) |
Other |
|
|
(30,833 |
) |
|
|
— |
|
Total deferred tax liabilities |
|
|
(271,530 |
) |
|
|
(328,825 |
) |
|
|
|
|
|
|
|
|
|
Net deferred tax assets |
|
|
10,007,284 |
|
|
|
15,873,654 |
|
Valuation allowance |
|
|
(10,116,093 |
) |
|
|
(15,975,958 |
) |
|
|
$ |
(108,809 |
) |
|
$ |
(102,304 |
) |
|