| Summary of Significant Accounting Policies | Note 3. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (āU.S. GAAPā) and pursuant to the rules and regulations of the SEC. The Acquisition was accounted for as a business combination using the acquisition method of accounting. Determining the fair value of certain assets and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions. Principles of Consolidation The consolidated financial statements include all accounts of the Acquired Companies and the Acquired Companiesā subsidiaries and do not represent a single legal entity. All material intercompany transactions and balances have been eliminated in the accompanying consolidated financial statements. Reclassification Certain prior period statement of cash flow amounts have been reclassified to conform to the current presentation. These reclassifications did not have an impact on net cash flows. Liquidity As reflected in the accompanying consolidated financial statements, the Company reported a net loss of $53.8 million and $41.9 million for the years ended December 31, 2021 and 2020, respectively, and had an accumulated deficit of $176.5 million as of December 31, 2021. The Companyās net cash used in operations was $6.4 million for the year ended December 31, 2021. In April and May 2020, the Company received $3.2 million in proceeds from loans under the Paycheck Protection Program. In November 2020, the Company entered into a senior secured term loan facility that provides for borrowing of term loans in an aggregate principal amount of $25.0 million. In December 2020, the Company issued 2.0 million shares of common stock in a registered direct offering for $7.0 million at a price of $3.50 per share. During the year ended December 31, 2021, the Company sold 935,633 shares of common stock for $6.8 million in proceeds. As of December 31, 2021, the Company had $13.3 million in cash and cash equivalents, largely from the above financing sources. Based on the Companyās current expectations of revenues and expenses, the Company expects that its current cash and cash equivalents is sufficient to meet its liquidity needs for twelve months after the issuance of these financial statements. If the Companyās revenues do not grow as expected and if the Company is unable to manage expenses sufficiently, the Company may be required to obtain additional equity or debt financing. Although the Company has been previously able to attract financing as needed, such financing may not continue to be available at all, or if available, on reasonable terms as required. Further, the terms of such financing may be dilutive to existing shareholders or otherwise on terms not favorable to the Company or existing shareholders. If the Company is unable to secure additional financing, as circumstances require, or does not succeed in meeting its sales objectives, it may not be able to continue its operations. Segments The Company has five operating segments. The Companyās Chief Executive Officer and Chief Financial Officer, who jointly are the Companyās chief operating decision maker, review financial information for each of the Acquired Companies, together with certain consolidated operating metrics, to make decisions about how to allocate resources and to measure the Companyās performance. See Note 11. Emerging Growth Company The Company was an āemerging growth companyā until December 31, 2021 as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012 (the āJOBS Actā), which allowed it to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company had elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Companyās consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accountant standards used. Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash includes cash held in checking and savings accounts. Cash equivalents are comprised of investments in money market mutual funds. Cash and cash equivalents are recorded at cost, which approximates fair value. Accounts Receivable Accounts receivable consists of amounts due from our customers, which are primarily located throughout the United States and Canada. Accounts receivable are recorded at the invoiced amount, do not require collateral, and do not bear interest. The Company estimates its allowance for doubtful accounts by evaluating specific accounts where information indicates the Companyās customers may have an inability to meet financial obligations, such as bankruptcy and significantly aged receivables outstanding. Uncollectible receivables are written-off in the period management believes it has exhausted every opportunity to collect payment from the customer. Bad debt expense is recorded when events or circumstances indicate an additional allowance is required based on the Companyās specific identification approach. The allowance for doubtful accounts as of December 31, 2021 and 2020 was immaterial. Bad debt expense for all periods presented was immaterial. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents, and accounts receivable. Cash accounts in financial institutions held in the United States and Canada at times may exceed the depository insurance coverage of $250,000 and CDN 100,000, respectively. As of December 31, 2021 and 2020, the Company had not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheets and the reported amounts of revenue and expenses during the reporting periods. Making estimates requires management to exercise significant judgment. Significant estimates, assumptions and judgments made by management include, among others, the determination of the fair value of common stock, impairment risks associated with goodwill and intangible assets, share-based awards, warrants, and contingent consideration. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further customer slowdowns or shutdowns, depress demand, and adversely impact results of operations. During the year ended December 31, 2021, the Company faced significant uncertainties and continues to expect uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic . Estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in the consolidated financial statements. Property and Equipment Property and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement of operations in the period realized. Property, plant and equipment is depreciated using the straight-line method over five fifteen three five Leasehold improvements are amortized over the shorter of the useful lives or the term of the respective leases. Intangible Assets Intangible assets consist of acquired customer relationships, acquired developed technology, trade names and non-compete agreements which were acquired as part of the Acquisition. The Company determines the appropriate useful life of its intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized over their estimated useful lives using the straight-line method, which approximates the pattern in which the economic benefits are consumed. Goodwill Goodwill represents the excess of the purchase price of an entity over the estimated fair value of the assets acquired and liabilities assumed. Under ASC 350, Intangibles ā Goodwill and Other Business Combinations The Company accounts for business acquisitions using the acquisition method of accounting based on Accounting Standards Codification (āASCā) 805 ā Business Combinations, which requires recognition and measurement of all identifiable assets acquired and liabilities assumed at their fair value as of the date control is obtained. The Company determines the fair value of assets acquired and liabilities assumed based upon its best estimates of the acquisition-date fair value of assets acquired and liabilities assumed in the acquisition. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired. Subsequent adjustments to the fair value of any contingent consideration are recorded in the Companyās consolidated statements of operations. Based on the acquisition date and the complexity of the underlying valuation work, certain amounts included in the Companyās consolidated financial statements may be provisional and thus subject to further adjustments within the permitted measurement period (a year from the date of acquisition), as defined in ASC 805. Impairment of long-lived assets The Company reviews long-lived assets, including property and equipment and intangible assets and goodwill for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be fully recoverable. An impairment loss is recognized when the assetās carrying value exceeds the total undiscounted cash flows expected from its use and eventual disposition. The amount of the impairment loss is determined as the excess of the carrying value of the asset over its fair value. Public and Private Warrants On November 1, 2016, the Company consummated its initial public offering of 55,200,000 units, consisting of one share of Class A common stock and one-third of one warrant exercisable for Class A Common Stock, at a price of $10.00 per unit. Each whole warrant entitled the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the āPublic Warrantsā). Simultaneously with the closing of the IPO, the Company completed the private sale of 8,693,334 warrants to the Companyās sponsor at a price of $1.50 per warrant (the āPrivate Warrantsā). Each Private Warrant allowed the sponsor to purchase one share of Class A common stock at $11.50 per share. The warrants will expire on February 19, 2024, which is five years after the acquisition date. The Private Warrants are identical to the Public Warrants except that holders of the Private Warrants may elect to exercise them on a cashless basis by surrendering their warrants for that number of shares of common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the āfair market valueāā (defined below) by (y) the fair market value. The āfair market valueā means the average reported last sale price of the common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent. The Company evaluated the Public and Private Warrants under ASC 815-40, Derivatives and Hedging-Contracts in Entityās Own Equity Leases Effective January 1, 2019, the Company accounts for its leases under ASC 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases, and are recorded on the consolidated balance sheet as both a right of use asset and a lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Companyās incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right of use asset results in straight-line rent expense over the lease term. Variable lease expenses are recorded when incurred. In calculating the right of use asset and lease liability, the Company elects to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election, and recognizes rent Fair Value The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value . ā Level 1 ā uses quoted prices in active markets for identical assets or liabilities. ā Level 2 ā uses observable inputs other than quoted prices in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ā Level 3 ā uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. The Companyās only material financial instruments carried at fair value as of December 31, 2021 and 2020, with changes in fair value flowing through current earnings, consist of contingent consideration liabilities recorded in conjunction with business combinations and warrant liabilities and are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurement at ā ā ā ā ā Reporting Date Using ā ā ā Quoted Prices in Significant ā ā ā ā ā ā ā Active Markets ā Other ā Significant ā ā Balance as of ā for Identical ā Observable ā Unobservable ā ā December 31, ā Assets ā Inputs ā Inputs ā ā 2021 ā (Level 1) ā (Level 2) ā (Level 3) Contingent consideration ā current ā $ 13 ā $ ā ā $ ā ā $ 13 Contingent consideration ā long term ā 43,032 ā ā ā ā ā 43,032 Warrant liability ā ā 4,868 ā ā ā ā ā ā ā ā 4,868 Total liabilities measured at fair value ā $ 47,913 ā $ ā ā $ ā ā $ 47,913 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurement at ā ā ā ā ā Reporting Date Using ā ā ā Quoted Prices in Significant ā ā ā ā ā ā ā Active Markets ā Other ā Significant ā ā Balance as of ā for Identical ā Observable ā Unobservable ā ā December 31, ā Assets ā Inputs ā Inputs ā ā 2020 ā (Level 1) ā (Level 2) ā (Level 3) Contingent consideration ā current ā $ 743 ā $ ā ā $ ā ā $ 743 Contingent consideration ā long term ā 42,530 ā ā ā ā ā 42,530 Warrant liability ā ā 3,040 ā ā ā ā ā ā ā ā 3,040 Total liabilities measured at fair value ā $ 46,313 ā $ ā ā $ ā ā $ 46,313 ā ā There were no transfers made among the three levels in the fair value hierarchy for the years ended December 31, 2021 and 2020. The following tables present additional information about Level 3 liabilities measured at fair value. Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for liabilities within the Level 3 category may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. Changes in contingent consideration liabilities measured at fair value from December 31, 2020 to December 31, 2021 were as follows: ā ā ā ā ā Contingent consideration ā December 31, 2020 $ 43,273 Change in fair value of contingent consideration ā 597 Payments of contingent consideration ā ā (825) Contingent consideration ā December 31, 2021 ā $ 43,045 ā ā The fair value of the Companyās contingent consideration liabilities recorded as part of the Acquisition has been classified within Level 3 in the fair value hierarchy. The contingent consideration represents the estimated fair value of future payments due to the sellers based on each companyās achievement of annual earnings targets in certain years and other events considered in certain transaction documents. The fair values of the contingent consideration are calculated through the use of Monte Carlo simulations based on earnings projections for the respective earn-out periods, corresponding earnings thresholds, and approximate timing of payments as outlined in the purchase agreements for each of the Acquired Companies. The analyses utilized the following assumptions: (i) expected term; (ii) risk-adjusted net sales or earnings; (iii) risk-free interest rate; and (iv) expected volatility of earnings. Estimated payments, as determined through the respective models, were further discounted by a credit spread assumption to account for credit risk. The contingent consideration is revalued to fair value each period, and any increase or decrease is recorded in operating income (loss). The fair value of the contingent consideration may be impacted by certain unobservable inputs, most significantly with regard to discount rates, expected volatility and historical and projected performance. Significant changes to these inputs in isolation could result in a significantly different fair value measurement. As of December 31, 2021, the contingent consideration liability consists of consideration due to former shareholders of CityBase and shareholders associated with an asset purchase by eCivis prior to the Acquisition. Shareholders associated with CityBase may receive, upon CityBaseās trailing twelve-month net revenue exceeding $37.0 million, or the CityBase threshold, on or prior to December 31, 2048, an earnout payment equal to a number of shares (or, in the case of certain individuals associated with CityBase who are not accredited investors, the cash value thereof) of our common stock calculated by dividing $54.5 million by the greater of (x) $10.00 or (y) the volume-weighted average closing price for the shares of our common stock for the 30 trading days immediately preceding the payment date. The fair value of contingent consideration as of December 31, 2021 is $42.4 million. The valuation of contingent consideration as of December 31, 2021 was derived from a Monte Carlo simulation of payout patterns from revenue estimates provided by the Company. ā Pursuant to the terms of a 2018 asset purchase agreement by eCivis, shareholders associated with the purchase may receive cash consideration equal to 7.5% of new revenue between $500,000 and 999,999.99, 10% of new revenue above $1,000,000, 2% of renewal revenue up to 249,999.99 3% of renewal revenue between $250,000.00 to $749,999.99 and 5% above $750,000.00 in each earn-out year beginning in 2018 and ending in 2022. Only revenue derived from the acquired assets is eligible. The potential undiscounted amount of all future payments that the Company could be required to make is unlimited. The total fair value of the associated contingent liability as of December 31, 2021 is approximately $0.6 million. The valuation of contingent consideration as of December 31, 2021 was derived from a discounted cash flow model based on expected payment amounts estimated by the Company. ā Changes in the warrant liability measured at fair value from December 31, 2020 to December 31, 2021 were as follows: ā ā ā ā ā Warrant liability ā December 31, 2020 ā $ 3,040 Change in fair value of warrant liability ā 1,828 Warrant liability ā December 31, 2021 ā $ 4,868 ā ā ā ā ā The warrant liability was estimated using a Black-Scholes model derived from a Monte Carlo simulation of the Companyās outstanding public warrants. These inputs were primarily derived from the implied volatility of the traded public warrant price or 41.8% as of December 31, 2021. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value because of the short-term nature of these instruments. The Company measures certain assets at fair value on a non-recurring basis, generally annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include goodwill and other intangible assets. A financial instrumentās categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Foreign Currency Translation and Transactions The assets, liabilities and results of operations of certain consolidated entities are measured using their functional currency, which is the currency of the primary foreign economic environment in which they operate. Upon consolidating these entities with the Company, their assets and liabilities are translated to U.S. dollars at currency exchange rates as of the consolidated balance sheet date and their revenues and expenses are translated at the weighted average currency exchange rates during the applicable reporting periods. Translation adjustments resulting from the process of translating these entitiesā consolidated financial statements are reported in accumulated other comprehensive income (loss) in the consolidated balance sheets and total other comprehensive loss on the consolidated statements of operations. Revenue Recognition The Company adopted the Financial Accounting Standards Board (āFASBā) revenue recognition framework, ASC 606, Revenue from Contracts with Customers With the adoption of Topic 606, revenues are recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenues recognized will not occur. The Company determines the amount of revenues to be recognized through application of the following steps: ā Identification of the contract, or contracts with a customer; ā Identification of the performance obligations in the contract; ā Determination of the transaction price; ā Allocation of the transaction price to the performance obligations in the contract; and ā Recognition of revenues when or as the Company satisfies the performance obligations. For contracts where the period between when the Company transfers a promised service to the customer and when the customer pays is one year or less, the Company has elected the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component. The Company has made a policy election to exclude from the measurement of the transaction price all taxes assessed by a government authority that are both imposed on and concurrent with a specific revenue producing transaction and collected by the Company from a customer. Such taxes may include but are not limited to sales, use, value added and certain excise taxes. Disaggregation of Revenues ā ā ā ā ā ā ā ā ā ā ā Year Ended ā Year Ended ā ā ā December 31, ā December 31, ā ā 2021 2020 ā Subscriptions, support and maintenance ā $ 46,058 $ 35,477 ā Professional services ā 12,255 11,109 ā License ā 749 1,315 ā Asset sales ā 1,391 227 ā Total revenues ā $ 60,453 $ 48,128 ā ā ā ā ā ā ā ā ā ā Revenues Subscription, support and maintenance Our contracts may include variable consideration in the form of usage fees, which are constrained and recognized once the uncertainties associated with the constraint are resolved, which is when usage occurs and the fee is known. Subscription, support and maintenance revenues also includes kiosk rentals and support or maintenance for on-premises software pertaining to license sales. Revenues from kiosk rentals and that support are recognized on a straight-line basis over the support period. Revenues from subscription, support and maintenance comprised approximately 76% and 74% of total revenues for the years ended December 31, 2021 and 2020, respectively. Professional services License. Asset sales. Significant judgments The Company enters into contracts with its customers that may include access to SaaS, professional services, software licenses, and sales of hardware. A performance obligation is a promise in a contract with a customer to transfer products or services that are distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment. Deferred revenue Deferred revenue primarily consists of amounts that have been billed to or received from customers in advance of revenue recognition and prepayments received from customers in advance for subscription services to the Companyās SaaS offerings and related implementation and training. The Company recognizes deferred revenue as revenues when the services are performed, and the corresponding revenue recognition criteria are met. The Company receives payments both upfront and over time as services are performed. Customer prepayments are generally applied against invoices issued to customers when services are performed and billed. Deferred revenue is reduced as services are provided and the revenue recognition criteria are met. Deferred revenue that is expected to be recognized as revenues during the succeeding twelve-month period are recorded in current liabilities as deferred revenue ā current portion, and the remaining portion is recorded in long-term liabilities as deferred revenue ā less current portion. Revenues of approximately $22.3 and $17.3 million were recognized for the years ended December 31, 2021 and 2020, respectively, that were included in deferred revenue at the beginning of the respective periods. The change in deferred revenue was as follows: ā ā ā ā ā ā ā ā ā ā ā Year Ended ā Year Ended ā ā ā December 31, ā December 31, ā ā ā 2021 2020 ā Deferred revenue, beginning ā $ 23,906 ā $ 18,610 ā Billings, net ā ā 65,342 ā ā 53,424 ā Revenue recognized ratably over time ā ā (39,766) ā ā (29,829) ā Revenue recognized over time as delivered ā ā (12,255) ā ā (11,109) ā Revenue recognized at a point in time ā ā (8,432) ā ā (7,190) ā Deferred revenue, ending ā $ 28,795 ā $ 23,906 ā ā ā Cost of revenues Cost of revenues primarily consists of salaries and benefits of personnel relating to our hosting operations and support, implementation, and grants research. Cost of revenues includes data center costs including depreciation of the Companyās data center assets, third-party licensing costs, consulting fees, and the amortization of acquired technology from recent acquisitions. Share-based Compensation The Company expenses share-based compensation over the requisite service period based on the estimated grant-date fair value of the awards. Share-based awards with graded-vesting schedules are recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model. The assumptions used in calculating the fair value of share-based awards represent managementās best estimates, involve inherent uncertainties and the application of managementās judgment. Expected Term Expected Volatility Risk-Free Interest Rate Expected Dividend ā In accordance with Accounting Standards Update (āASUā) No. 2016-09, Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting, Net Loss per Share Net loss per common share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per common share is computed similar to basic net income per common share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. Due to the net loss in each of the years ended December 31, 2021 and 2020, diluted and basic loss per share are the same. Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at December 31, 2021 and 2020 are as follows: ā ā ā ā ā ā ā ā 2021 ā 2020 Warrants to purchase common stock 27,093,334 ā 27,093,334 Unvested restricted stock units 3,751,306 ā 3,280,290 Options to purchase common stock 240,421 ā 245,904 Total 31,085,061 ā 30,619,528 ā ā ā ā ā ā ā Income Taxes Deferred tax assets and liabilities are recorded for the expected future tax consequences of events that have been recognized in the Companyās financial statements or tax returns using the asset and liability method. In estimating future tax consequences, all expected future events other than changes in the tax laws or rates are considered. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future years and for tax carryforwards if, in the opinion of management, it is more likely than not that the deferred tax assets will be realized. ā The Company has recorded a valuation allowance to reduce their deferred tax assets to the net amount that they believe is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels |
