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Income Taxes
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
Note 5 – Income Taxes
 
Through December 31, 2013, the Company incurred net operating losses for federal tax purposes of approximately $14,100,000. The net operating loss carry forward may be used to reduce taxable income through the years 2028 to 2033. The availability of the Company's net operating loss carry forward is subject to limitation if there is a 50% or more change in the ownership of the Company's stock.
 
A reconciliation of the expected tax computed at the statutory federal income tax rate to the provision for income taxes is as follows:
 
 
 
2013
 
2012
 
Expected tax benefit at 34%
 
$
(1,797,000)
 
$
(1,424,000)
 
Change in valuation allowance
 
 
1,720,000
 
 
1,675,000
 
Other
 
 
77,000
 
 
(251,000)
 
Provision for income taxes
 
$
-
 
$
-
 
 
The net deferred tax asset at December 31, 2013 and 2012 was $4,795,000 and $3,075,000, respectively. A 100% valuation allowance has been established against the deferred tax assets as the utilization of the loss carry forward cannot reasonably be assured. Significant components of the deferred tax assets (liabilities), computed at the statutory federal tax rate of 34%, are approximately as follows:
 
 
 
2013
 
2012
 
Net operating loss carry forwards
 
$
4,800,000
 
$
3,020,000
 
Accrued liabilities
 
 
(25,000)
 
 
(20,000)
 
Stock compensation
 
 
(65,000)
 
 
(15,000)
 
Depreciation
 
 
75,000
 
 
80,000
 
Prepaid expenses
 
 
20,000
 
 
20,000
 
Deferred rent
 
 
(10,000)
 
 
(10,000)
 
Deferred tax assets, net
 
 
4,795,000
 
 
3,075,000
 
Valuation allowance
 
 
(4,795,000)
 
 
(3,075,000)
 
Net deferred tax asset
 
$
-
 
$
-
 
 
Although the Company is not under examination, the tax years for 2008 and forward are subject to examination by United States tax authorities. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2013 and 2012, there was no accrued interest or penalties related to uncertain tax positions.