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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Schedule of Depreciation and Amortization Periods for Fixed Assets

 

 

Depreciation/

 

 

Amortization

Asset Category

 

Period

Machinery

 

7 Years

Website costs

 

5 Years

Computer equipment

 

3 Years

Schedule of Computer and Equipment and Website Costs

Fixed assets consist of the following:


 

 

December 31, 2017

 

 

December 31, 2016

 

 

 

 

 

 

 

 

Computer equipment

 

$

13,605

 

 

$

6,724

 

Machinery

 

 

450,000

 

 

 

 

Leasehold improvements

 

 

 

 

 

300,000

 

Website development

 

 

24,775

 

 

 

24,775

 

 

 

 

 

 

 

 

 

 

Total

 

 

488,380

 

 

 

331,499

 

Accumulated depreciation

 

 

(31,671

)

 

 

(104,102

)

Balance

 

$

456,709

 

 

$

227,397

 

 

Schedule of Dilutive Shares Not Included in Loss Per Share Computation


 

 

For the years ended

December 31,

 

Dilutive shares not included in loss per share computation

 

2017

 

 

2016

 

Options

 

 

5,600,000

 

 

 

4,207,181

 

Warrants

 

 

5,650,000

 

 

 

 

Convertible shares

 

 

1,598,096

 

 

 

3,684,279

 

 

 

 

12,848,096

 

 

 

7,891,460

 

Schedule of Income Tax Rate Reconciliation

 

 

December 31,
2017

 

 

December 31,
2016

 

Expected income tax (benefit) expense at the statutory rate of 37.63%

 

$

(1,104,465

)

 

$

(1,391,352

)

Tax effect of expenses that are not deductible for income tax purposes (net of other amounts deductible for tax purposes) – permanent differences

 

 

136,870

 

 

 

906,433

 

Change in valuation allowance

 

 

967,595

 

 

 

484,919

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

$

 

 

$

 

Schedule of Components of Deferred Income Taxes

The components of deferred income taxes are as follows:


 

 

December 31,
2017

 

 

December 31,
2016

 

Deferred income tax asset - related to stock-based compensation and impairment (permanent differences)

 

$

756,064

 

 

$

756,064

 

Net operating loss carryforwards

 

 

3,092,148

 

 

 

2,124,553

 

Effect of TCJA recalculation

 

 

(1,366,527

)

 

 

(938,914

)

Valuation allowance

 

 

(2,481,685

)

 

 

(1,941,703

)

Deferred income taxes

 

$

 

 

$

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