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Income Taxes
 6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

Note 6. Income Taxes.

 

The Company is subject to income taxes under the Israeli and U.S. tax laws:

 

Corporate tax rates

 

The Company is subject to Israeli corporate tax rate of 25% in 2016, 24% in 2017 and 23% from 2018. The Company is subject to a blended U.S. tax rate (federal as well as state corporate tax) of 35%.

 

As of December 31, 2016, the Company generated net operating losses in Israel of approximately $2,972,501, which may be carried forward and offset against taxable income in the future for an indefinite period.

 

As of December 31, 2016, the Company generated net operating losses in the U.S. of approximately $15,746,103. Net operating losses in the United States are available through 2035. Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.

 

The Company is still in its development stage and has not yet generated revenues, therefore, it is more likely than not that sufficient taxable income will not be available for the tax losses to be utilized in the future. Therefore, a valuation allowance was recorded to reduce the deferred tax assets to its recoverable amounts.

 

    As of
June 30, 2017		     As of
December 31, 2016		  
Net loss carry-forward   $ 19,349,640     $ 17,155,076  
                 
Total deferred tax assets     6,425,899       5,730,945  
Valuation allowance     (6,425,899 )     (5,730,945 )
                 
Net deferred tax assets   $ -     $ -