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Income Taxes | 12 Months Ended
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Dec. 31, 2020
Income Taxes |
Income Taxes | Note 7 - Income Taxes The Company is subject to taxation in the United States of America ("U.S.") and files tax returns in the U.S. federal jurisdiction. Through December 31, 2020, the Company incurred net operating losses for federal tax purposes of approximately $69,600,000. The Company experienced an “ownership change” within the meaning of Section 382(g) of the Internal Revenue Code of 1986, as amended, during April 2012. The ownership change will subject net operating loss carryforwards to an annual limitation, which may restrict the ability to use them to offset taxable income in periods following the ownership change. In general, the annual use limitation equals the aggregate value of the Company’s stock at the time of the ownership change multiplied by a tax-exempt interest rate specified by the Internal Revenue Service. The Company analyzed the available information to determine the amount of the annual limitation. Based on information available, the 2012 limitation is estimated to be $686,000 annually. The availability of the Company’s net operating loss carry forwards may be subject to further limitation if a change in the ownership of more than 50% occurs within any three-year period since the last ownership change. The net operating loss carry forwards generated before 2018 may be used to reduce taxable income through the years 2028 to 2037. Net operating loss carryforwards generated for year 2018 and thereafter do not expire. A reconciliation of the expected tax computed at the statutory federal income tax rate to the provision for income taxes is as follows:
|  | 2020 |  | 2019
Expected tax benefit at 21% |  | $ | (1,446,000) |  | $ | (1,781,000)
Change in valuation allowance |  |  | 1,325,000 |  |  | 1,595,000
Other |  |  | 121,000 |  |  | 186,000
Provision for income taxes |  | $ | — |  | $ | —
The net deferred tax asset at December 31, 2020 and 2019 was $14,830,000 and $13,505,000, respectively. In assessing the potential realization of these deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the Company attaining future taxable income during the periods in which those temporary differences become deductible. At December 31, 2020 and 2019, management was unable to determine if it is more likely than not that the Company’s deferred tax assets will be realized and has therefore recorded an appropriate valuation allowance against deferred tax assets at such dates. Significant components of the deferred tax assets (liabilities), are approximately as follows:
|  | 2020 |  | 2019
Net operating loss carry forwards |  | $ | 14,620,000 |  | $ | 13,216,000
Accrued liabilities |  |  | 90,000 |  |  | 217,000
Stock compensation |  |  | 120,000 |  |  | (48,000)
Depreciation |  |  | (10,000) |  |  | 145,000
Prepaid expenses |  |  | 20,000 |  |  | (21,000)
Other |  |  | (10,000) |  |  | (4,000)
Deferred tax assets, net |  |  | 14,830,000 |  |  | 13,505,000
Valuation allowance |  |  | (14,830,000) |  |  | (13,505,000)
Net deferred tax asset |  | $ | — |  | $ | —
Although the Company is not under examination, the tax years for 2017 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, 2020, and 2019, there were no accrued interest or penalties related to uncertain tax positions.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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