INCOME TAXES

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

As of December 31, 2015, management has evaluated and concluded that there are no significant uncertain tax positions requiring recognition in the Company's financial statements.

As of December 31, 2015 and 2014, the Company has net operating loss carryforwards of approximately $7,810,000 and $5,600,000, respectively, to reduce future Federal and state taxable income through 2033 and $4,800,000 and $4,100,000, respectively of temporary differences in the timing of the deduction for certain stock-based compensation. However, as a result of the recent and potential changes in the share ownership of the Company, future utilization of the net operating losses may be limited pursuant to Section 382 of the Internal Revenue Service. The maximum net operating loss carryforward which could be utilized pursuant to Section 382 for Be Active Brands is $185,000 a year, based on the approximately $2,500,000 losses incurred prior to the 2013 Merger.

Since at present realization of the Company’s related deferred tax assets of $4,800,000 at December 31, 2015 and $3,688,000 at December 31, 2014 is not considered more likely than not, a valuation allowance of $4,800,000 at December 30, 2015 and $3,688,000 at December 31, 2014 have been provided. The valuation allowance increased by $1,112,000 from December 31, 2014. Certain charges for operations for the years ended December 31, 2015 and 2014 related to derivative liabilities resulting from equity and debt issuances have no income tax effect and are not considered above.