Annual report pursuant to Section 13 and 15(d)

13. INCOME TAXES (Details-Deferred income taxes)

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13. INCOME TAXES (Details-Deferred income taxes) - USD ($)
Dec. 31, 2017
Dec. 31, 2016
Deferred tax assets:    
Net operating loss carryforwards $ 3,593,000 $ 5,061,830
Business credit carryforwards 100,000 80,551
Bad debt expense 56,000 39,834
Intangible assets 1,113,000 1,742,639
Stock-based compensation 575,000 579,970
Unrealized capital loss 12,000 16,870
Inventory reserve 997,000 1,419,084
Deferred rent 299,000 0
Other 59,000 44,410
Total deferred tax assets 6,804,000 8,985,188
Deferred tax liabilities:    
Property and equipment (331,000) (18,052)
CanX intangible assets (1,074,000) (1,556,300)
Total deferred tax liabilities (1,405,000) (1,574,352)
Valuation allowance (6,473,000) (8,967,136)
Net deferred tax liabilities $ (1,074,000) $ (1,556,300)