INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes

Schedule of Deferred Tax Assets (Liabilities)

The deferred tax assets (liabilities) and associated valuation allowance at December 31, 2015 and 2014, are as follows:

	2015			2014
Current assets:
Stock based compensation	$	490,000		$	370,000
		490,000			370,000
Non-current assets:
Intangible assets		4,900			7,000
Property and equipment		840,000			157,000
Net operating loss carryforwards		3,219,000			2,598,000
		4,553,900			3,132,000
Valuation allowance		(4,553,900	)		(3,132,000	)
Net deferred tax assets	$	-		$	-

Schedule of Income Tax Benefit

No income tax benefit was recognized for the years ended December 31, 2015 and 2014, as indicated below:

	2015			2014
Deferred tax benefit:
Federal	$	(1,307,000	)	$	(1,204,000	)
State		(115,000	)		(106,000	)
		(1,422,000	)		(1,310,000	)
Increase in valuation allowance		1,422,000			1,310,000
	$	-		$	-

Schedule of the Reconciliation of Income Taxes

A reconciliation of income tax computed at the U.S. statutory tax rate of 34% to the effective income tax rate is as follows:

	2015			2014
Statutory rate		34	%		34	%
State taxes		3			3
Permanent differences and other		(4	)		(7	)
Valuation allowance		(33	)		(30	)
Effective rate		-			-