Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

8 Income Taxes

The provision for income taxes results in effective tax rates which are different than the federal income tax statutory rate. The nature of the differences for the three months ended March 31, 2016 and 2015 were as follows:

	2016			2015
Expected federal income tax benefit	$	(344,991	)	$	(282,546	)
State income taxes after credits		(66,969	)		(54,847	)
Change in valuation allowance		411,960			337,393
Other		-			-
Total provision for income taxes	$	-		$	-

The components of the net deferred tax assets and liabilities at March 31, 2016 and December 31, 2015 consisted of the following:

	2016			2015
Deferred tax assets
Net operating loss carryforwards	$	1,994,277			1,582,317
Stock-based compensation		104,021			61,050
Total deferred tax assets		2,098,297			1,643,367
Deferred tax liabilities
Depreciation and amortization		(68,685	)		(61,888	)
Total deferred tax liabilities		(68,685	)		(61,888	)
Valuation allowance		(2,029,612	)		(1,581,479	)
Net deferred tax assets	$	-			-

At March 31, 2016, the Company has a cumulative net operating loss carryforward (NOL) of approximately $5.0 million, to offset against future income for federal and state tax purposes. These federal and state NOLs can be carried forward for 20 and 15 years, respectively. The federal NOLs begins to expire in 2034, and the state NOLs begins to expire in 2029.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income during the periods in which those temporary differences become deductible. Due to the uncertainty of the realizability of the deferred tax assets, management has determined a full valuation allowance is appropriate.