Income Taxes (Tables)

The provision for income taxes consists of the following components:

The components of deferred income tax assets and liabilities are as follows:

	As of December 31,
	2015		2014

Long-term deferred tax assets:
Stock compensation benefit	$	219,778	$	219,778
Net operating loss carryforward		2,316,729		2,057,788
Total long-term deferred tax assets		2,536,507		2,277,566
Valuation allowance		(2,536,507)		(2,277,566)
		-		-
Long-term deferred tax liabilities:
Intangible assets		-		-
Property and equipment		-		-
Total long-term deferred tax liabilities		-		-

Net deferred tax assets	$	-	$	-

A schedule of the NOLs is as follows:

The effective tax rates for 2015 and 2014 were computed by applying the federal and state statutory corporate tax rates as follows:

	Years ended December 31,
	2015			2014

Statutory Federal income tax rate		34	%		34	%
State income taxes		1	%		0	%
Non-deductible compensation		-12	%		-32	%
Less valuation allowance		-23	%		-3	%
Loss of expiring NOLs		0	%		1	%
Other		0	%		0	%
		0	%		0	%

A reconciliation of beginning and ending amount of unrecognized tax benefits is as follows:

Balance at January 1, 2014	$	11,400
Additions based on tax positions related to prior years		-
Reductions based on tax positions related to prior years		-
Balance at December 31, 2014	$	11,400
Additions based on tax positions related to the current year		-
Reductions based on tax positions related to the current year		-
Balance at December 31, 2015	$	11,400