Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

NOTE 9 – INCOME TAXES

For the year ended December 31, 2018, the Company incurred a net loss of $1,260,638. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $18,460,000 at December 31, 2018 and will expire beginning in the year 2021.

The provision for taxes on income from operations for the years ended December 31, 2018 and 2017 consisted of the following:

		2018	2017
Expense (benefit) at Federal statutory rate – 21%/34%		$(249,690)	$(504,560)
State tax effects, net of Federal taxes		---	(2,535)
Nondeductible expenses		517	1,898
Deferred tax asset valuation allowance		249,173	505,197
	Income tax expense	$ ---	$ ---

The cumulative tax effect at the expected rate of 21% and 34%, respectively, of significant items comprising our net deferred tax amount is as follows as of December 31, 2018 and 2017:

		2018	2017
Net operating loss carry-forward		$816,075	$4,448,400
Valuation allowance		(816,075)	(4,448,400)
	Net deferred tax asset	$ ---	$ ---

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance has been recorded primarily related to tax benefits associated with income tax operating loss carry-forwards. Adjustments to the valuation allowance will be made if there is a change in management's assessment of the amount of the deferred tax asset that is realizable.

At December 31, 2018, the Company had available net operating loss carry-forwards of approximately $18,460,000 available to offset future taxable income for federal income tax purposes that have a range of expiration dates beginning in the year of 2021 and extending through the year of 2038. The federal carryforwards resulted from losses generated in 1996 through 2002, 2005, 2006, 2008, 2009, 2010, and 2012 through 2018. Utilization of future net operating losses may be limited due to certain structural ownership changes which have occurred over the last several years related to the Company's equity and convertible note payable financing transactions under Section 382 of the Internal Revenue Code.

The Company adopted the provisions of ASC 740 as of January 1, 2007 and has analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. We have identified the U.S. Federal and Florida as our "major" tax jurisdictions.

The Company believes that its income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, the Company did not record a cumulative effect adjustment related to the adoption of ASC 740. The Company's policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes.

On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was signed into law. The Act decreases the U.S. corporate federal income tax rate from a maximum of 35% to a flat 21% effective January 1, 2018. The Act also includes a number of other provisions including, among others, the elimination of net operating loss carrybacks and limitations on the use of future losses, the repeal of the Alternative Minimum Tax regime and the repeal of the domestic production activities deduction. These provisions are not expected to have a material effect on the Company.