| Provision for Income Taxes |
The provision for income taxes differs
from the amounts which would be provided by applying the statutory federal income tax rate of 34% to the net loss before provision
for income taxes for the following reasons:
| |
|
December 31, 2014 |
|
|
December 31, 2013 |
|
| Book income (loss) from operations |
|
|
(1,373,641 |
) |
|
|
(921,549 |
) |
| Stock/options issued for services |
|
|
57,949 |
|
|
|
125,980 |
|
| Interest expense on convertible notes |
|
|
263,279 |
|
|
|
51,509 |
|
| Change in derivative liability |
|
|
695,061 |
|
|
|
215,493 |
|
| Change in valuation allowance |
|
|
357,352 |
|
|
|
528,567 |
|
| Income tax expense |
|
|
- |
|
|
|
- |
|
|
| Net Deferred Tax Assets |
Net deferred tax assets consist of the
following components as of:
| |
|
2014 |
|
|
2013 |
|
| Net operating loss carry forwards (expire through 2032) |
|
|
(9,188,904 |
) |
|
|
(7,815,263 |
) |
| Stock/options issued for services |
|
|
3,264,292 |
|
|
|
3,206,344 |
|
| Stock/options issued for executive comp. |
|
|
649,593 |
|
|
|
649,593 |
|
| Contributed services |
|
|
8,194 |
|
|
|
8,194 |
|
| Impairment expense |
|
|
1,805,230 |
|
|
|
1,805,230 |
|
| Interest expense on convertible notes |
|
|
528,107 |
|
|
|
264,828 |
|
| Change in derivative liability |
|
|
802,908 |
|
|
|
107,847 |
|
| Loss on sale of assets |
|
|
82,121 |
|
|
|
82,121 |
|
| Total gross deferred tax asset/liabilities |
|
|
(2,048,459 |
) |
|
|
(1,691,107 |
) |
| |
|
|
|
|
|
|
|
|
| Valuation allowance |
|
|
2,048,459 |
|
|
|
1,691,107 |
|
| Net deferred taxes |
|
|
- |
|
|
|
- |
|
|