Income Taxes

12 Months Ended

Dec. 31, 2019

Notes

Income Taxes

NOTE 13 – INCOME TAXES

The provision (benefit) for income taxes for the years ended December 31, 2019 and 2018 consist of the following:

	2019		2018
Federal:
Current	$	-	$	-
Deferred		-		-
State:
Current		-		-
Deferred		-		-
Total	$	-	$	-

Net deferred tax assets consist of the following components as of December 31, 2019 and 2018:

	2019		2018
Deferred tax assets (liabilities):
NOL Carryover	$	2,602,613	$	2,568,963
Stock Based Compensation		332,094		283,611
Depreciation and Amortization		(663,868)		(557,735)
Inventory Reserves		18,490		18,490
R&D Tax Credits		(42,630)		(1,473)
Debenture Interest Payable		(474,381)		(474,381)
Other Reserves		13,060		13,060
Valuation Allowance		(1,900,638)		(1,850,535)
Net deferred tax asset (liability)	$	-	$	-

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended December 31, 2019 and 2018 due to the following:

	2019		2018
Tax at statutory rate	$	(52,131)	$	(52,400)
Effects of:
Meals and Entertainment		(2,028)		(3,125)
Stock Based Compensation		(48,483)		(43,596)
Depreciation and Amortization		836		75,920
R & D Tax Credits		(44,103)		(21,850)
Other, net		20,509		(4,224)
Change in Valuation Allowance		50,103	$	49,275
Total	$	-		-

At December 31, 2019, the Company had net operating loss carryforwards of approximately $7,438,706 that may be offset against future income from the year 2019 through 2039. 

No tax benefit has been reported in the December 31, 2019 consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.