Income Taxes

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Note 9 - Income Taxes

The components of our deferred tax asset are as follows:

	December 31,
	2015			2014
Net operating loss carryforwards	$	7,582,195		$	6,189,094
Equity-based instruments		8,946,178			7,727,432
Accrued liabilities		85,329			106,556
Valuation allowance		(16,613,702	)		(14,023,082	)
Deferred tax asset	$	-		$	-

Our net operating loss carryforwards expire after 20 years, beginning in 2032.

A reconciliation of income taxes computed at the statutory rate to the income tax amount recorded is as follows:

	Year ended December 31,
	2015			2014
Income tax benefit at statutory rate	$	(2,353,853	)	$	(8,015,585	)
State income tax, net of Federal benefit		(251,309	)		(855,782	)
Meals and entertainment		14,542			16,984
Increase in valuation allowance		2,590,620			8,854,383
Income tax benefit	$	-		$	-

We had no gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. We have not accrued any interest or penalties associated with income taxes. We file income tax returns in the United States federal jurisdiction. With few exceptions, we are no longer subject to U.S. federal, state or non-U.S. income tax examination by tax authorities on tax returns filed before January 31, 2009. No tax returns are currently under examination by any tax authorities.