Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Reconciliation of Federal Statutory Income Tax Rate and Effective Income Tax Rate

A reconciliation of the federal statutory income tax rate and the effective income tax rate is as follows for the years ended December 31, 2016 and 2015:

	December 31,
	2016			2015
	(%)			(%)
Federal statutory rate		34			34
Change in valuation allowance	—				(2	)
State income taxes, net of federal effect	—				6
Warrant liability FMV adjustment		6		—
Stock issuance costs		(5	)	—
Research and development credits		3			4
Removal of net operating loss and other credits		(33	)		(39	)
Stock compensation and other permanent items		(5	)		(3	)
Effective income tax rate		—			—

Summary of Significant Components of Deferred Tax Assets

Significant components of the Company’s deferred tax assets at December 31, 2016 and 2015 are as follows:

	December 31,
	2016			2015
Acquired technology	$	201,000		$	276,000
Stock compensation expense		539,000			430,000
Accruals and other		130,000			124,000
Total deferred tax assets		870,000			830,000
Less valuation allowance		(870,000	)		(830,000	)
Net deferred tax assets	$	—		$	—

Summary of Changes in Amount of Unrecognized Tax Benefits (Excluding Interest and Penalties)

A summary of the changes in the amount of unrecognized tax benefits (excluding interest and penalties) for 2016 and 2015 are as follows:

	2016		2015
Beginning balance of unrecognized tax benefits	$	-	$	-
Additions based on tax positions of prior years		1,961,595		-
Ending balance of unrecognized tax benefits	$	1,961,595	$	-