Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets as of December 31, 2015 and 2014 are summarized below.

	December 31,
	2015			2014
Start-up and organization costs	$	42,000		$	49,000
Research credits		181,000			139,000
Contingent liability		—			31,000
Stock-based compensation		938,000			952,000
Net operating loss carryforwards		4,528,000			3,532,000
Total deferred tax assets		5,689,000			4,703,000
Valuation allowance		(5,689,000	)		(4,703,000	)
Net deferred tax assets	$	—		$	—

In assessing the potential realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the Company attaining future taxable income during the periods in which those temporary differences become deductible. As of December 31, 2015 and 2014, management was unable to determine if it is more likely than not that the Company’s deferred tax assets will be realized, and has therefore recorded an appropriate valuation allowance against deferred tax assets at such dates.

No federal tax provision has been provided for the years ended December 31, 2015 and 2014 due to the losses incurred during such periods. Reconciled below is the difference between the income tax rate computed by applying the U.S. federal statutory rate and the effective tax rate for the years ended December 31, 2015 and 2014.

	Years Ended December 31,
	2015			2014
U. S. federal statutory tax rate		(34.0	)%		(34.0	)%
Non-deductible stock-based compensation		—	%		0.5	%
Non-deductible fair value of warrant extensions		0.4	%		3.6	%
Non-deductible fair value of warrant discounts		2.0	%		1.6	%
Expirations related to stock-based compensation		3.3	%		5.0	%
Adjustment to deferred tax asset		—	%		(1.0	)%
Change in valuation allowance		28.3	%		24.3	%
Effective tax rate		0.0	%		0.0	%

At December 31, 2015, the Company has available net operating loss carryforwards for federal and state income tax purposes of approximately $10,881,000 and $11,042,000, respectively, which, if not utilized earlier, expire through 2035.