Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
12 Months Ended
Dec. 31, 2016
Income Taxes [Abstract]  
INCOME TAXES

NOTE 9 – INCOME TAXES

 

The Company had no income tax expense for the years ended December 31, 2016 and 2015. Due to uncertainties surrounding the realization of its deferred income tax assets in future periods, the Company has recorded a 100% valuation allowance against its net deferred income tax assets. If it is determined in the future that it is more likely than not that any deferred income tax assets are realizable, the valuation allowance will be reduced by the estimated net realizable amounts.

 

The tax effect of temporary differences and net operating losses that give rise to components of deferred income tax assets and liabilities consist of the following:

 

    As of December 31,  
    2016     2015  
Deferred income tax assets (liability):            
Share based compensation and Stock warrant     909,529       891,018  
Derivative liability     (24,677 )     2,331  
Net operating loss carryforwards     836,196       682,903  
      1,721,048       1,576,252  
Less valuation allowance     (1,721,048 )     (1,576,252 )
    $ -     $ -  

 

At December 31, 2016, the Company had available net operating loss carryovers of approximately $2.5 million that may be applied against future taxable income and expires at various dates between 2033 and 2036, subject to certain limitations. The Company has a deferred tax asset arising substantially from the benefits of such net operating loss deduction and has recorded a valuation allowance for the full amount of this deferred tax asset since it is more likely than not that some or all of the deferred tax asset may not be realized.