7. Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income tax benefit reconciled to tax calculated at statutory rates is as follows:

	2014			2013
Federal tax (benefit) at statutory rate	$	(1,122,270	)	$	(368,614	)
Change in valuation allowance		1,122,900			342,174
Other		(630	)		26,440
Provision for income taxes, net	$	––		$	––

At December 31, 2014 and 2013, the components of the Company’s deferred taxes are as follows:

	2014			2013
Deferred tax assets (liabilities)
Net operating loss carryforwards	$	10,046,713		$	7,836,904
Accrued compensation		170,161			155,084
Depreciation		14,282			13,185
Stock-based compensation		434,740			375,678
Accrued related party interest		––			1,190,547
Other		42,318			13,916
Total		10,708,214			9,585,314
Less:  Valuation allowance		(10,708,214	)		(9,585,314	)
Net deferred tax asset	$	––		$	––

The Company has the following net operating loss tax carryforwards available at December 31, 2014:

Year of Expiration	Net Operating Losses
2018	$	1,425,000
2019		1,234,000
2020		2,849,000
2021		4,168,000
2023		1,217,000
2024		646,000
2025		589,000
2026		873,000
2027		2,607,000
2028		2,512,000
2029		2,196,000
2030		1,232,000
2031		1,028,000
2032		437,000
2033		37,000
2034		6,499,000
Total	$	29,549,000

In the event of a significant change in the ownership of the Company, the utilization of such loss and tax credit carryforwards could be substantially limited.