INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Expiration of consolidated operating loss carryforwards and research credit carryforwards

The following are the consolidated operating loss carryforwards and research credit carryforwards that will begin expiring as follows:

Calendar Years	Consolidated Operating Loss Carryforwards		Research Activities Carryforwards
2021	$	34,248	$	---
2023		95,666		---
2024		910,800		13,584
2025		1,687,528		21,563
2026		11,950,281		60,797
2027		3,431,365		85,052
2028		8,824,940		139,753
2029		6,889,761		81,940
2030		5,113,583		41,096
2031		3,728,626		43,592
2032		3,695,792		8,690
2033		3,187,559		15,882
2034		1,797,031		19,491
2035		2,594,151		21,113
Total	$	53,941,331	$	552,553

Deferred tax assets and deferred tax liabilities

An analysis of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are as follows:

	2015			2014
Deferred tax assets:
Net operating loss carryforwards	$	19,179,724		$	18,279,724
Intangible assets		132,836			188,944
Other		605,231			554,404
Total gross deferred tax assets		19,917,791			19,023,072

Deferred tax liabilities:
Property and equipment		12,541			33,696
Total gross deferred tax liabilities		12,541			33,696

Net total of deferred assets and liabilities		19,905,250			18,989,376
Valuation allowance		(19,905,250	)		(18,989,376	)
Net deferred tax assets	$	---		$	---

Reconciliation of expected statutory federal income tax rate to actual income tax rate

The following is a reconciliation of the expected statutory federal income tax rate to our actual income tax rate for the years ended December 31:

	2015			2014
Expected income tax (benefit) at federal statutory tax rate -35%	$	( 961,543	)	$	( 681,109	)

Permanent differences		53,653			52,273
Research tax credits		(21,113	)		(19,491	)
Amortization of deferred start up costs		---			---
Valuation allowance		929,003			648,327
Income tax expense	$	---		$	---