Source document: telkonet-inc_2019

Question: What are the types of property and equipment?
Facts: computer software; development test equipment; leasehold improvements; office equipment; office fixtures and furniture
Answer: development test equipment; computer software; office equipment; office fixtures and furniture; leasehold improvements

Question: What is the total property and equipment for the year ended December 31, 2019?
Facts: 186,525
Answer: 186,525

Question: What is the depreciation and amortization expenses for the year ended December 31, 2019?
Facts: $66,082
Answer: $66,082

Question: Which year has a higher total value of property and equipment?
Facts: 2018
Derivation: Find and compare the total property and equipment across the two years
Answer: 2018

Question: What is the percentage change in the value of computer software from 2018 to 2019?
Facts: 76,134
Derivation: (76,134-76,134)/76,134
Answer: 0 percent

Question: What is the percentage change in the Depreciation and amortization expense from 2018 to 2019?
Facts: 66,082; 67,107
Derivation: (66,082-67,107)/67,107
Answer: -1.53 percent

Question: Which guide does the Company follow to determine their deferred tax liabilities and assets?
Facts: ASC 740-10 “Income Taxes”
Answer: ASC 740-10 “Income Taxes”

Question: What is the income tax benefit in 2019?
Facts: 100,363
Answer: 100,363

Question: What is the change in valuation allowance for deferred tax assets in 2018?
Facts: 658,650
Answer: 658,650

Question: What is the change in state taxes from 2018 to 2019?
Facts: 6,525; 6,874
Derivation: 6,525-6,874
Answer: -349

Question: What is the percentage change in Book expenses not deductible for tax purposes from 2018 to 2019?
Facts: 2,882; 2,980
Derivation: (2,980-2,882)/2,882
Answer: 3.4 percent

Question: What is the percentage change in the Tax benefit computed at the statutory rate from 2018 to 2019?
Facts: 427,244; 631,497
Derivation: (427,244-631,497)/631,497
Answer: -32.34 percent

Question: What is adjusted EBITDA?
Facts: Adjusted earnings before interest, taxes, depreciation, amortization and stock-based compensation
Answer: Adjusted earnings before interest, taxes, depreciation, amortization and stock-based compensation

Question: What is the adjusted EBITDA from operations used for?
Facts: used for determining our debt covenant compliance
Answer: used for determining our debt covenant compliance

Question: What was the net loss reported for the year ended December 31, 2019?
Facts: $1,934,133
Answer: $1,934,133

Question: Which year has the higher stock-based compensation?
Facts: 2019
Derivation: Compare the values of the stock-based compensation between the two years, find the year with the higher stock-based compensation
Answer: 2019

Question: What is the percentage change in net loss from 2018 to 2019?
Facts: 1,934,133; 3,016,750
Derivation: (1,934,133-3,016,750)/3,016,750
Answer: -35.89 percent

Question: What is the percentage change in the cash balance from January 1, 2019 to December 31, 2019?
Facts: 3,300,600; 4,678,891
Derivation: (3,300,600-4,678,891)/4,678,891
Answer: -29.46 percent

Question: When did the U.S. government enact the "Tax Act" ?
Facts: December 22, 2017
Answer: December 22, 2017

Question: How are deferred tax liabilities and assets determined under ASC 740-10?
Facts: determined based on the difference between financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse
Answer: determined based on the difference between financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse

Question: What do the income taxes include?
Facts: net tax effects of net operating loss (NOL) carry forwards and the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes
Answer: net tax effects of net operating loss (NOL) carry forwards and the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes

Question: What is the percentage change in the net operating loss carry forwards from 2018 to 2019?
Facts: 20,342,559; 20,772,428
Derivation: (20,772,428-20,342,559)/20,342,559
Answer: 2.11 percent

Question: What is the percentage change in the total deferred tax assets from 2018 to 2019?
Facts: 21,386,025; 21,514,417
Derivation: (21,514,417-21,386,025)/21,386,025
Answer: 0.6 percent

Question: Which year has the higher amount of intangibles (deferred tax assets)?
Facts: 2018
Derivation: compare the value of the intangibles (deferred tax assets) between the two years
Answer: 2018

Question: What is the allowance for doubtful accounts at December 31, 2019?
Facts: $55,039
Answer: $55,039

Question: When are accounts receivable written off?
Facts: when they become uncollectible
Answer: when they become uncollectible

Question: When are accounts escalated to "uncollectible" status?
Facts: after multiple attempts at collection have proven unsuccessful
Answer: after multiple attempts at collection have proven unsuccessful

Question: Which year has the higher deductions?
Facts: 2019
Derivation: Compare the deduction value between the two years, find the year with the higher deductions value
Answer: 2019

Question: What is the percentage change in the ending balance of allowance for doubtful accounts from 2018 to 2019?
Facts: 55,039; 65,542
Derivation: (55,039-65,542)/65,542
Answer: -16.02 percent

Question: What is the change in beginning balance of allowance of doubtful accounts from 2018 to 2019?
Facts: 22,173; 65,542
Derivation: 65,542-22,173
Answer: 43369

Question: What does the expected life of awards granted represent?
Facts: the period of time that they are expected to be outstanding
Answer: the period of time that they are expected to be outstanding

Question: How is the volatility of the Company's common stock estimated?
Facts: based on the calculated historical volatility of the Company’s common stock using the share price data for the trailing period equal to the expected term prior to the date of the award
Answer: based on the calculated historical volatility of the Company’s common stock using the share price data for the trailing period equal to the expected term prior to the date of the award

Question: What is the valuation model used by the Company?
Facts: the Black-Scholes option valuation model
Answer: the Black-Scholes option valuation model

Question: What is the percentage change in the outstanding number of shares from January 1, 2018 to December 31, 2018?
Facts: 3,349,793; 4,376,474
Derivation: (3,349,793-4,376,474)/4,376,474
Answer: -23.46 percent

Question: Which stock option has the highest weighted average exercise price per share in 2018?
Facts: granted
Derivation: find the highest weighted average exercise price per share in 2018
Answer: granted

Question: What is the change in the outstanding number of shares from December 31, 2018 to December 31, 2019?
Facts: 3,349,793
Derivation: 3,349,793-3,349,793
Answer: 0