INCOME TAXES

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 12– INCOME TAXES

Income taxes for the years ended December 31, 2015 and 2014 are summarized as follows:

	December 31
	2015				2014
Current:
Federal		$	-			$	-
State			-				-
Deferred benefit			(597,488	)			(658,876	)
Change in valuation allowance			597,488				658,876
Income tax expense		$	-			$	-

Through December 31, 2015 and December 31, 2014, the Company incurred net operating losses for tax purposes of approximately   $8,577,937 and $7,084,218 respectively.

The net operating loss carry forward for federal and state purposes may be used to reduce taxable income through the year 2034. 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.  

	December 31
	2015			2014
Net operating loss carry forward	$	8,577,937		$	7,084,218
Deferred tax assets, net		3,431,175			2,833,687
Valuation allowance		(3,431,175	)		(2,833,687	)
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, 2015 and 2014:  

	December 31
	2015						2014
Tax expense (benefit) at federal statutory rate	$	(593,851	)		-34	%	$	(1,546,840	)	-34	%
State taxes, net of federal benefit		(104,797	)		-6	%		(272,972	)	-6	%
Disallowed expenses		63,920			4	%		1,123,334		25	%
Depreciation		37,241			2	%		37,602		1	%
Change in valuation allowance		597,488			34	%		658,876		14	%
Tax expense at actual rate	$	-		$	-		$	-		-