NOTE 15 – INCOME TAXES

During 2015 and 2014, the Company incurred net losses, and therefore had no tax liability. The net deferred tax asset generated by the loss carry forward has been fully reserved. The cumulative net loss carry forward is approximately $110,536,436 and $101,193,948 for the years ended December 31, 2015 and 2014 respectively, and will expire in the years 2021 through 2035.

At December 31, 2015, the net deferred tax asset based on a 34% tax rate consisted of the following:

	12/31/2015			12/31/2014

Net operating loss	$	37,852,388		$	34,405,942

Less: Valuation allowance		(37,852,388	)		(34,405,942	)

Net deferred tax asset	$	-		$	-

After evaluating our own potential tax uncertainties, the Company has determined that there are no material uncertain tax positions that have a greater than 50% likelihood of reversal if the Company were to be audited. Our tax returns for the years ended December 31, 2015 and 2014 are subject to IRS audit.