Better Choice Company Inc. Transition report pursuant to Rule 13a-10 or 15d-10

Note 12 - Income Taxes (Tables)

Note 12 - Income Taxes (Tables)

4 Months Ended

Dec. 31, 2018

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The provision (benefit) for income taxes differs from the amount of income tax determined by applying the applicable Federal statutory income tax rates (21% for the period ended December 31, 2018 and year ended August 31, 2018 and 34% for the year ended August 31, 2017) to the loss before taxes as a result of the following differences:

	December 31, 2018			August 31, 2018			August 31, 2017
Federal income tax (benefit) at statutory rate	$	(926,700	)	$	(619,672	)	$	(592,708	)
State income tax (benefit), net of Federal		(441,286	)		(295,082	)		(191,758	)
Permanent differences – change in value of derivative liability and other		1,314,116			619,000
Effect of change in Federal statutory rate		-			230,616			-
Changes in valuation allowance		53,870			65,138			784,466

Total	$	-		$	-		$	-

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred income taxes include the net tax effects of net operating loss (NOL) carryforwards and the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2018, August 31, 2018 and August 31, 2017 significant components of the Company’s deferred tax assets are as follows:

	December 31, 2018			August 31, 2018			August 31, 2017
Deferred Tax Assets (Liabilities):
Net operating loss carryforwards	$	920,390		$	820,494		$	741,267
Accrued compensation		39,680			44,800			54,000
Valuation allowance		(960,070	)		(865,294	)		(795,267	)
Net deferred tax assets (liabilities)	$	-		$	-		$	-