Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of deferred tax assets and liabilities

At December 31, 2016 and 2015, the components of these temporary differences and the deferred tax asset were as follows:



	As of December 31
	2016			2015
Deferred Tax Asset
Current:
Accrued Expenses	$	192,000		$	412,000
Inventory Allowance	234,000			253,000
Other	43,000			26,000
Total Current	469,000			691,000
Non-current:
Stock Based Compensation-Stock Options and Restricted Stock	1,919,000			1,730,000
Tax effect of NOL carryforward	79,384,000			65,935,000
Depreciation	17,406,000			20,859,000
Amortization	(637,000		)	(607,000		)
Warranty reserve	68,000			102,000
Total Non-current	98,140,000			88,019,000
Net deferred tax asset	98,609,000			88,710,000
Less valuation allowance	(98,609,000		)	(88,710,000		)
Net deferred tax asset	$	—		$	—

Schedule of effective income tax rate reconciliation

The Company’s effective tax rate for the years ended December 31, 2016 and 2015 differs from the statutory rate due to the following (expressed as a percentage of pre-tax income):



	2016		2015
Federal statutory rate	35.0	%	35.0	%
State statutory rate	2.6	%	3.5	%
Change in rate	—	%	(0.9	)%
Permanent tax differences	(0.1	)%	(0.3	)%
Change in fair value of derivatives	0.9	%	(44.3	)%
Deemed interest expense on debt discount	(5.1	)%	(0.9	)%
Loss on extinguishment of liabilities	(5.9	)%	43.7	%
Other	(1.8	)%	(0.3	)%
Increase in valuation allowance	(25.6	)%	(35.6	)%
	—	%	—	%