INCOME TAXES

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 11 – INCOME TAXES

For the years ended December 31, 2015, 2014 and 2013, there was no provision for income taxes, current or deferred.  All product sales are derived from sales in the United States.

At December 31, 2015, we had a federal net operating loss carry forward of $192,601,415 available to offset future taxable income through 2035. The federal carryforwards will begin to expire in 2021.

A reconciliation between taxes computed at the federal statutory rate and the consolidated effective tax rate is as follows:

	2015			2014			2013
Federal statutory tax rate		34.0	%		34.0	%		35.0	%
State tax rate, net of federal tax benefit		4.73	%		5.8	%		5.8	%
Adjustment in valuation allowances		(38.97	)%		(50.9)	%		(32.4	)%
Permanent and other differences		0.24	%		11.1	%		(8.4	)%
Provision (benefit) for income taxes		—	%		—	%		—	%

Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax asset as of December 31, 2015, 2014, and 2013 are as follows:

	2015			2014			2013
Deferred Income Tax Assets:
Net operating losses	$	79,499,633		$	43,091,437		$	14,773,537
R&D Credit		186,347			—			547,511
Total deferred income tax asset		79,685,980			43,091,437			15,321,048
Valuation allowance		(79,685,980	)		(43,091,437	)		(15,321,048	)
Deferred income tax assets, net	$	—		$	—		$	—

We believe that it is more likely than not that we will not generate sufficient future taxable income to realize the tax benefits related to the deferred tax assets on our balance sheet and as such, a valuation allowance has been established against the deferred tax assets for the period ended December 31, 2015.

Unrecognized Tax Benefits

As of the period ended December 31, 2015, we have no unrecognized tax benefits.