Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes Tables

Provision for income tax

	2016		2015		2014
Current
Federal	$	-	$	-	$	-
State		-		4,527		-
Deferred (net of valuation allowance)
Federal		-		-		-
State		-		-		-
Income tax provision	$	-	$	4,527	$	-

Reconciliation of income tax expense (benefit)

	2016			2015			2014
Federal income tax expense at statutory rate		(34.0	)%		(34.0	)%		(34.0	)%
State income tax, net of federal benefit		(5.3	)%		(5.1	)%		(5.3	)%
Permanent differences		8.4	%		5.7	%		2.7	%
Change in tax rates		(0.3	)%		0.7	%		(6.1	)%
Expirations of state net operating losses		1.8	%		17.4	%		0.0	%
Change in stock options and restricted stock		11.8	%		0.0	%		0.0	%
Change in valuation allowance		16.4	%		13.7	%		42.8	%
Other		1.2	%		1.8	%		(0.1	)%
Effective tax rate		0.0	%		0.2	%		0.0	%

Deferred income tax assets and liabilities

	2016			2015
Deferred tax assets:
Net operating loss carryforward	$	11,023,000		$	10,860,000
Capital loss carryforward		811,000			808,000
Stock options and restricted stock		2,694,000			3,048,000
Inventory reserve		195,000			249,000
Allowance for doubtful accounts		425,000			144,000
Accrued expenses		487,000			277,000
Deferred revenue		13,000			-
Intangibles		29,000			23,000
Deferred rent		252,000			54,000
		15,929,000			15,463,000
Less valuation allowance		(15,530,000	)		(15,050,000	)
		399,000			413,000
Deferred tax liabilities:
Leasehold improvements and equipment		(282,000	)		(284,000	)
Prepaid expenses		(117,000	)		(129,000	)
		(399,000	)		(413,000	)
	$	-		$	-