Annual report pursuant to Section 13 and 15(d)

8. Income Taxes (Tables)

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8. Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Provision for income taxes
    As of December 31,
    2017   2016
Current:        
Federal   $ —       $ —    
State     800       800  
Total current     800       800  
Deferred:                
Federal     980,176       463,520  
State     25,169       71,734  
Total deferred     1,005,345       535,254  
Full valuation allowance     (1,000,987 )     (535,254 )
Total provision (1)   $ (3,558 )   $ 800  
Effective income tax rate reconciliation
    %
Federal income tax     34.00 %
State income taxes, less federal benefit     0.07 %
Tax credits     0.09 %
Permanent differences     -27.38 %
Tax basis intangibles     -4.90 %
Change in valuation allowance     -1.88 %
Other (Release of VA)     0.03 %
Effective tax rate benefit (expense)     0.03 %
Deferred tax assets and liabilities
    As of December 31,
    2017   2016
Deferred tax assets:                
Net operating loss carryforwards   $ 186,019     $ 111,245  
Tax credit carryforwards     30,143       4,470  
Stock compensation     58,536       —    
Intangible asset basis differences     730,647       419,539  
Gross deferred tax assets     1,005,345       535,254  
Valuation allowance     (1,000,987 )     (535,254 )
Total deferred tax assets, net of valuation allowance     4,358       0  
Deferred tax liabilities:                
Net deferred tax liability     —         —    
Net deferred taxes   $ 4,358     $ 0