Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 11 – INCOME TAXES

A reconciliation of the differences between the effective income tax rates and the statutory federal tax rates for the three months ended March 31, 2016 and 2015 are as follows:

	Three Months ended March 31, 2016			Amount			Three Months ended March31 2015			Amount
Tax benefit at U.S. statutory rate		34	%	$	64,026			34	%	$	143,606
State taxes, net of federal benefit		4	%		7,532			4	%		16,895
Change in valuation allowance		(38	)%	$	(71,558	)		(38	)%	$	(160,501	)
					-						-

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at March 31, 2016 and December 31, 2015 consisted of the following:

Deferred Tax Assets	March 31, 2016			December 31, 2015
Net Operating Loss Carry-forward	$	10,022,175		$	9,924,492
Deferred Tax Liabilities		(821,931	)		(795,805	)
Net Deferred Tax Assets		9,200,244			9,128,687
Valuation Allowance		(9,200,244	)		(9,128,687	)
Total Net Deferred Tax Assets	$	-		$	-

As of March 31, 2016, the Company had a net operating loss carry forward for income tax reporting purposes of approximately $21.6 million that may be offset against future taxable income through 2031. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. No tax asset has been reported in the financial statements because the Company believes there is a 50% or greater chance the carry forwards will expire unused. Accordingly, the potential tax benefits of the loss carry forwards are offset by a valuation allowance of the same amount.