XML 31 R19.htm IDEA: XBRL DOCUMENT v3.7.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
INCOME TAXES
13. INCOME TAXES

 

Due to recurring losses for the years ended December 31, 2016 and 2015, the Company’s net tax provision was zero.

 

The difference between the effective income tax rate and the applicable statutory federal income tax rate is summarized as follows:

 

    2016     2015  
Statutory federal rate     (35.0) %     (35.0) %
State income tax rate, net of federal benefit     (3.5) %     (3.5) %
Permanent differences, including stock based compensation     51.5 %     25.3 %
Change in valuation allowance     13.0 %     13.2 %
Effective tax rate     0.0 %     0.0 %

 

At December 31, 2016 and 2015, the Company’s deferred tax assets were as follows:

 

Deferred Tax Assets   2016     2015  
             
Net operating loss carry forwards     17,248,000       16,029,000  
Less: Valuation allowance     (17,248,000)       (16,029,000)  
Net deferred tax assets     0.0       0.0  
 

The Company’s valuation allowance increased by $1,219,000 during 2016 and decreased by $276,000 during 2015. Total net operating loss carry forwards at December 31, 2016 were approximately $41.6 million. The losses, if unused, expire through 2036.The Company’s net operating loss carry forwards may be limited due to ownership changes pursuant to Internal Revenue Code section 382.