INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

The provision (benefit) for income taxes consists of the following for the years ended December 31, 2018 and 2017:

Deferred tax assets consist of the following as of December 31, 2018 and 2017:

	2018			2017
Net operating loss carryforward	$	19,900,927		$	15,086,163
General business tax credit		9,342,425			8,911,700
Stock options		6,011,522			3,583,299
Charitable contribution		139,124			38,128
Accrued expenses		364,306			229,105
Unearned revenue		1,395,870		—
Allowance for bad AR		172,939		—
Other		317,845			29,855
Total gross deferred tax assets		37,644,958			27,878,250
Less valuation allowance		(34,599,232	)		(13,381,045	)
Net deferred tax assets	$	3,045,726		$	14,497,205

Deferred tax liabilities consist of the following as of December 31, 2018 and 2017:

	2018			2017
Unrealized gain on LT investment	$	2,964,943		$	—
Unrealized gain on foreign exchange translation and others		(78,281	)		(32,752	)
Unrealized gain on marketable securities		—			(14,464,453	)
Other		(2,502	)		—
Total deferred tax liability	$	2,884,160		$	(14,497,205	)

The income tax provision differs from that computed using the statutory federal tax rate of 21%, due to the following:

	2018			2017
Tax benefit at statutory federal rate	$	(12,169,762	)	$	(15,496,876	)
State taxes, net of federal tax benefit		(3,786,890	)		(398,315	)
Increase in valuation allowance		6,753,526			(8,943,404	)
Permanent items		750,485			9,521,184
General business tax credit		(430,724	)		(1,407,553	)
Impact from tax rate change (34% to 21%)		—			10,210,183
OCI, tax benefit		—			(12,306,343	)
Other		8,889,587			6,518,014
	$	6,222		$	(12,303,110	)

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