XML 22 R13.htm IDEA: XBRL DOCUMENT v3.3.1.900
Income Taxes
 12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 7. INCOME TAXES

Income tax expense (benefit) consists of the following:

 

 2015   2014
   Current tax  

 

$ 27,529

             $4,143
   Deferred tax            (244,391)           (220,926)
   Valuation allowance           216,862            216,783
     $            -       $              -   
         

 

 

   2015   2015
Deferred tax liabilities:        

 

Temporary differences related to:

Depreciation

            (167,752)           (142,855)
         
Deferred tax assets:        
  Net operating loss carry forward          5,099,568         4,787,809
  Related Party interest          2,171,986         2,039,030
  Other   -                                         -   

 

Net deferred tax asset before

valuation allowance

   7,103,802         6,683,984
  Valuation Allowance         (7,103,802)        (6,683,984)
     $              -       $              -   
         
    2015   2014
Income tax at federal rate   35.00%   35.00%
Permanent differences   -35.00%   -35.00%
         
Effective income tax rate   0.00%   0.00%

As of December 31, 2015 and 2014, the Company has available for income tax purposes approximately $22.0 and $22.0 million respectively in federal net operating loss carry forwards, which may be available to offset future taxable income. These loss carry forwards expire in 2020 through 2033. The Company may be limited by Internal Revenue Code Section 382 in its ability to fully utilize its net operating loss carry forwards due to possible future ownership changes. A 100% valuation allowance has been effectively established against the net deferred tax asset since it appears more likely than not that it will not be realized.

The provision (benefit) for income taxes attributable to income (loss) from continuing operations does not differ materially from the amount computed at the federal income tax statutory rate.