XML 22 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 7. INCOME TAXES  

The provision for income tax consists of the following:

  2016   2015  
   Net operating loss carryforward        20,596,578         14,570,194    
   Related Party interest          6,918,509            6,505,675    
   Depreciation, amortization and other (308,000)   (479,291)    
   Net operating loss carryforward        27,207,087         20,596,578  
         

Net deferred tax

assets

          9,522,480              7,208,802  
         
Valuation allowance         (9,522,480)            7,208,802)  
Net deferred tax assets  -          -        
           
    2016   2015  
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, 2016 and 2015, the Company had available for income tax purposes approximately $27 million and $21 million respectively in federal net operating loss carry forwards, which may be available to offset future taxable income. These loss carry forwards expire in 2021 through 2034. 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.