Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

9. INCOME TAXES

The provision for refundable Federal income tax consists of the following as of December 31:

	2018			2017
Federal income tax benefit calculated at statutory rate of 21% and 34%, respectively	$	598,000		$	431,000
Less: Stock based compensation expense		(55,000	)		(37,000	)
Effect of rate change from 34% to 21%		(2,102,000	)		(1,895,000	)
Change in valuation allowance		1,559,000			1,501,000
Net income tax provision	$	-		$	-

The cumulative tax effect at the expected rate of 21% and 34% of significant items comprising our net deferred tax amount is as follows at December 31:

	2018			2017
Deferred tax asset attributable to:
Net operating losses carried forward	$	3,396,282		$	3,061,000
Less: Valuation allowance		(3,396,282	)		(3,061,000	)
Net deferred tax asset	$	-		$	-

At December 31, 2018, the Company had an unused net operating loss carryover approximating $16,166,000, subject to section 386 limitations, that is available to offset future taxable income, which expires beginning in 2028.

The Company established a full valuation allowance. The Company continually reviews the adequacy of the valuation allowance and recognizes a benefit from income taxes only when reassessment indicates that it is more likely than not that the benefits will be realized.