INCOME TAXES

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 13 - INCOME TAXES

Income taxes for the years ended December 31, 2013 and December 31, 2012 are summarized as follows:

	December 31
	2013		2012
Current:
Federal	$	-	$	-
State		-		-
Deferred benefit		(563,479)		(794,255)
Change in valuation allowance		563,479		794,255
Income tax expense	$	-	$	-

Through December 31, 2013 and December 31, 2012, the Company incurred net operating losses for tax purposes of approximately $5,929,289 and $6,521,206, respectively.

The net operating loss carry forward for federal and state purposes may be used to reduce taxable income through the year 2033. The availability of the Company's net operating loss carry forward is subject to limitation if there is a 50% or more positive change in the ownership of the Company's stock.

Components of the deferred tax assets are limited to the Company’s net operating loss carry forwards, and are presented in the table below.  A 100% valuation allowance has been established against the deferred tax assets, as the utilization of the loss carry forward cannot reasonably be assured.  

	2013			2012
Net operating loss carry forwards	$	5,929,289		$	6,521,206
Deferred tax assets, net		2,371,716			2,608,482
Valuation allowance		(2,371,716	)		(2,608,482	)
Net deferred tax assets	$	-		$	-

Differences between the benefit from income taxes and income taxes at the statutory federal income tax rate are as follows for the years ended December 31, 2013 and 2012:

	December 31, 2013						December 31, 2012
	Amount			Rate			Amount			Rate
Tax expense (benefit) at federal statutory rate	$	(408,169	)		-34	%	$	(1,150,460	)		-34	%
State taxes, net of federal benefit		(72,030	)		-6	%		(203,022	)		-6	%
Disallowed expenses		-			-			300,000			9	%
Beneficial conversion expense		-			-			177,683			5	%
Depreciation		(91,647)			-8	%		81,544	)		3	%
Other		8,367			1	%
Change in valuation allowance		563,479			47	%		794,255			23	%
Tax expense at actual rate	$	-			-		$	-			-