Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

8

– Income Taxes

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes.  The sources and tax effects of the differences are as follows:

Income tax provision at the federal statutory rate	21	%
Effect of operating losses	(21	)%
	0	%

At

December 31, 2019

, the Company has a net operating loss carryforward of approximately

$16.5

million for Federal and state purposes.  This loss will be available to offset future taxable income.  If

not

used, this carryforward will begin to expire in

2029.

The deferred tax asset relating to the operating loss carryforward has been fully reserved at

December 31, 2019

 and

December 31, 2018

.  The principal differences between the operating loss for income tax purposes and reporting purposes are shares issued for services and share-based compensation and a temporary difference in depreciation expense.