INCOME TAXES

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

NOTE 11. INCOME TAXES

No income taxes were recorded in the periods presented since the Company had taxable losses in these periods.

The provision for (benefit from) income taxes differs from the amount computed by applying the statutory United States federal income tax rate of 21% for the periods presented to income (loss) before income taxes. The sources of the difference are as follows:

	Three months ended March 31,
	2019			2018
Expected tax at 21%	$	(141,260	)	$	73,416
Nondeductible stock-based compensation		61,047			-
Nondeductible expense (nontaxable income) from derivative liability		-			(173,711	)
Nondeductible amortization of debt discount		-			10,848
Increase (decrease) in valuation allowance		80,213			89,447
Income tax provision	$	-		$	-

Significant components of the Company's deferred income tax assets are as follows:

	March 31,			December 31,
	2019			2018
Net operating loss carryforward	$	3,838,621		$	3,758,408
Less valuation allowance		(3,838,621	)		(3,758,408	)
Deferred income tax assets - net	$	-		$	-

Based on management’s present assessment, the Company has not yet determined that a deferred tax asset attributable to the future utilization of the net operating loss carryforward as of March 31, 2019 will be realized. Accordingly, the Company has maintained a 100% valuation allowance against the deferred tax asset in the financial statements at March 31, 2019. The Company will continue to review this valuation allowance and make adjustments as appropriate.

Current United States income tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited.

All tax years remain subject to examination by major taxing jurisdictions.