15. INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes Tables

Schedule of effective income tax rate

The following is a reconciliation of the effective income tax rate to the Federal statutory rate:

	As of December 31, 2017			As of December 31, 2016			As of December 31, 2015
Income tax calculated at statutory rate		(34.00	%)		(34.00	%)		(34.00	%)
State income taxes, net of Federal tax benefit		0.00	%		0.00	%		(3.63	%)
Temporary differences		(0.06	%)		(0.05	%)		30.00	%
Permanent differences		29.17	%		26.89	%		0.70	%
Change in valuation allowance		4.89	%		7.16	%		6.93	%
(Benefit) from income taxes		0.00	%		0.00	%		0.00	%

Schedule of deferred tax assets

As of December 31, 2017 and 2016, the deferred tax asset of $45,168 and $90,292, respectively, represents timing differences related to goodwill that was impaired in 2014.

	As of December 31, 2017			As of December 31, 2016			As of December 31, 2015
Amortization of intangible assets	$	45,168		$	90,292		$	94,366
Operating loss carryforward		699,564			824,040			187,019
Related party accrual		43,225			—			—
Gross deferred tax assets		787,957			914,332			281,385
Valuation allowance		(787,957	)		(914,332	)		(281,385	)
Net deferred tax liability/(asset)	$	—		$	—		$	—