Income Tax Provision

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax Provision

Note 10 – Income Tax Provision

Deferred Tax Assets

At December 31, 2015, the Company has available for federal income tax purposes a net operating loss (“NOL”) carry-forwards of approximately $3,636,000 that may be used to offset future taxable income through the fiscal year ending December 31, 2035. No tax benefit has been reported with respect to these net operating loss carry-forwards in the accompanying consolidated financial statements since the Company believes that the realization of its net deferred tax asset of approximately $1,236,000 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are fully offset by a valuation allowance of $1,236,000.

Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability. The valuation allowance increased by approximately $984,000 and decreased by approximately $92,000 for the year ended December 31, 2015 and 2014, respectively.

During the year ended December 31, 2014, the Company utilized approximately $1,737,000 of its NOL carry-forwards and made $575,000 in estimated payments.

Components of deferred tax assets are as follows:

	December 31, 2015			December 31, 2014
Net deferred tax assets – Non-current:
Expected income tax benefit from NOL carry-forwards	$	993,000		$	252,000
Less valuation allowance		(993,000	)		(252,000	)
Deferred tax assets, net of valuation allowance	$	-		$	-

Income Tax Provision in the Consolidated Statements of Operations

A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows:

	For the Year Ended December 31, 2015			For the Year Ended December 31, 2014
Federal statutory income tax rate		34.0	%		34.0	%
Change in valuation allowance on net operating loss carry-forwards		(34.0	%)		(34.0	%)
Effective income tax rate		0.0	%		0.0	%