Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2015 |
|---|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Schedule of Income before Income Tax, Domestic and Foreign |
The breakout of the loss from continuing
operations before income taxes between domestic and foreign operations is below:
| |
|
2015 |
|
|
2014 |
|
| Loss from continuing operations before income taxes |
|
|
|
|
|
|
|
|
| United States |
|
$ |
12,702,520 |
|
|
$ |
5,442,499 |
|
| Foreign |
|
|
1,618,905 |
|
|
|
759,875 |
|
| |
|
$ |
14,321,425 |
|
|
$ |
6,202,374 |
|
|
| Schedule of Components of Income Tax Expense (Benefit) |
The Income Tax (benefit) provision consists
of the following:
| Foreign |
|
|
|
|
|
|
|
|
| Current |
|
$ |
93,037 |
|
|
$ |
55,486 |
|
| Deferred |
|
|
103,461 |
|
|
|
(267,960 |
) |
| U.S. Federal |
|
|
|
|
|
|
|
|
| Current |
|
|
- |
|
|
|
318 |
|
| Deferred |
|
|
(4,502,404 |
) |
|
|
(1,266,980 |
) |
| State & Local |
|
|
|
|
|
|
|
|
| Current |
|
|
- |
|
|
|
- |
|
| Deferred |
|
|
(529,695 |
) |
|
|
(149,056 |
) |
| Change in Valuation Allowance |
|
|
5,023,169 |
|
|
|
1,151,691 |
|
| |
|
$ |
187,568 |
|
|
$ |
(476,501 |
) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
The (benefit) provision for income tax
using statutory U.S. federal tax rate is reconciled to the companys effective tax rate as follows:
| |
|
2015 |
|
|
2014 |
|
| Computed expected income tax benefit |
|
$ |
(4,869,285 |
) |
|
$ |
(2,093,584 |
) |
| State income taxes, net of federal benefit |
|
|
(572,857 |
) |
|
|
(205,177 |
) |
| Foreign rate differential |
|
|
143,646 |
|
|
|
45,883 |
|
| Australia loss |
|
|
(1,821,463 |
) |
|
|
- |
|
| Prior year true-ups other deferred tax balances |
|
|
323,485 |
|
|
|
106,236 |
|
| Travel, entertainment, and other |
|
|
82,956 |
|
|
|
91,045 |
|
| Capital loss expiration |
|
|
333,837 |
|
|
|
- |
|
| Convertible Debt Issuances and conversions |
|
|
482,018 |
|
|
|
- |
|
| Foreign Tax Expense |
|
|
93,037 |
|
|
|
- |
|
| Fixed asset DTL true-up |
|
|
27,384 |
|
|
|
305,796 |
|
| Noncontrolling interest |
|
|
881,264 |
|
|
|
- |
|
| Other |
|
|
60,376 |
|
|
|
121,609 |
|
| Change in valuation allowance |
|
|
5,023,169 |
|
|
|
1,151,691 |
|
| Total |
|
$ |
187,568 |
|
|
$ |
(476,501 |
) |
|
| Schedule of Deferred Tax Assets and Liabilities |
Deferred income taxes reflect the net
tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts
used for tax purposes. Major components of deferred tax assets at December 31, 2015 and 2014 were:
| |
|
2015 |
|
|
2014 |
|
| Net operating loss carryovers |
|
$ |
11,846,236 |
|
|
$ |
6,773,713 |
|
| Capital loss carryforwards |
|
|
154,700 |
|
|
|
488,500 |
|
| Section 1231 loss carryovers |
|
|
15,080 |
|
|
|
- |
|
| Charitable contribution carryforwards |
|
|
16,815 |
|
|
|
- |
|
| Derivative liability |
|
|
468,011 |
|
|
|
372,931 |
|
| Unremitted foreign earnings |
|
|
190,552 |
|
|
|
- |
|
| Restaurant startup costs |
|
|
137,893 |
|
|
|
- |
|
| Accrued Expenses |
|
|
36,182 |
|
|
|
- |
|
| Australian equity investment |
|
|
- |
|
|
|
(26,417 |
) |
| Deferred occupancy liabilities |
|
|
290,500 |
|
|
|
388,114 |
|
| Total deferred Tax Assets |
|
|
13,155,969 |
|
|
|
7,996,841 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment |
|
|
(978,585 |
) |
|
|
(469,986 |
) |
| Convertible debt |
|
|
(811,177 |
) |
|
|
(372,931 |
) |
| Investments |
|
|
(90,200 |
) |
|
|
(84,384 |
) |
| Intangibles |
|
|
(1,068,534 |
) |
|
|
(957,229 |
) |
| Goodwill |
|
|
785,987 |
|
|
|
(47,492 |
) |
| Total deferred tax liabilities |
|
|
(2,162,509 |
) |
|
|
(1,932,022 |
) |
| |
|
|
|
|
|
|
|
|
| Net deferred tax assets |
|
|
10,993,460 |
|
|
|
6,064,819 |
|
| Valuation Allowance |
|
|
(12,347,231 |
) |
|
|
(6,751,703 |
) |
| |
|
$ |
(1,353,771 |
) |
|
$ |
(686,884 |
) |
|
| Schedule of Uncertain Tax Positions |
The companys uncertain tax positions
for December 31, 2015 and 2014 are as follows:
| |
|
Unrecognized |
|
|
Interest and |
|
|
|
|
| |
|
Tax Benefit |
|
|
Penalties |
|
|
Total |
|
| Balance at December 31, 2014 |
|
$ |
419,301 |
|
|
$ |
- |
|
|
$ |
419,301 |
|
| Increases related to prior year tax positions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Decreases related to prior year tax positions |
|
|
(419,301 |
) |
|
|
- |
|
|
|
(419,301 |
) |
| Increases related to current year tax positions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Settlements during the period |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Lapse of statute of limitations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Balance at December 31, 2015 |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|