DEFERRED TAXES

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 11.   DEFERRED TAXES

The components of net deferred tax assets are as follows:

		December 31,
		2017		2016
Net operating loss carryforwards	$	3,446,733	$	2,761,830
Equity-based instruments		3,648,787		5,043,533
Long-lived assets and other		427,779		504,721
Deferred tax asset valuation allowance		(7,523,299)		(8,310,084)
	$	–	$	–

A reconciliation of our income tax provision and the amounts computed by applying statutory rates to income before income taxes is as follows:

		Year ended December 31,
		2017		2016
Income tax benefit at statutory rate	$	(2,795,089)	$	(3,456,426)
State income tax benefit, net of Federal benefit		(251,213)		(470,684)
Equity-based instruments		(315,589)		–
Amortization of debt discount		391,513		251,786
Loss on extinguishment of debt		–		838,379
Tax Cuts and Jobs Act rate change		991,223		–
Other		(242,781)		2,377
Valuation allowance		2,218,936		2,834,568
	$	–	$	–