Income Taxes

12 Months Ended

Dec. 31, 2014

Income Taxes

Income Taxes

NOTE 7 - INCOME TAXES

	2014			2013
Net loss before taxes	$	(16,010,604	)	$	(402,608	)
Income tax expense (recovery)	$	—		$	—

A reconciliation of the expected income tax expense, computed by applying a 35% U.S. Federal corporate income tax rate to income before taxes to income tax expense is as follows:

	2014			2013
Expected income tax expense (recovery)	$	(5,603,700	)	$	(141,000	)
Share-based payments		5,396,300			96,000
Interest		156,700			5,100
Loss on debt settlement		4,200			—
Change in valuation allowance		46,500			39,900
	$	—		$	—

At December 31, 2014 and 2013, the Company had available a net-operating loss carry-forward for Federal tax purposes of approximately $450,600 and $318,000, respectively, which may be applied against future taxable income, if any, at various times through 2034. Certain significant changes in ownership of the Company may restrict the future utilization of these tax loss carry-forwards. At December 31, 2014, the Company has a deferred tax asset of $158,400 representing the benefit of its net operating loss carry-forward. The Company has not recognized the tax benefit because realization of the tax benefit is uncertain and thus a valuation allowance has been fully provided against the deferred tax asset.

The Company recognizes interest and penalties, if any, related to uncertain tax positions in general and administrative expenses. No interest and penalties related to uncertain tax positions were accrued at December 31, 2014 and 2013.

The tax years 2014, 2013, 2012, 2011, 2010 and 2009 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company expects no material changes to unrecognized tax positions within the next twelve months.