Note 5 - Income Taxes

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

(

5

) Income Taxes

The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes as of

December 31, 2016

and

2015

are as follows:

Income tax at federal statutory rate	34.00	%
State tax, net of federal effect	3.96	%
	37.96	%
Valuation allowance	(37.96	)%
Effective rate	0.00	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

As of

December 31, 2016

and

2015,

the Company’s only significant deferred income tax asset was a cumulative estimated net tax operating loss of approximately

$26

million that is available to offset future taxable income, if any, in future periods, subject to expiration and other limitations imposed by the Internal Revenue Service.  Management has considered the Company's operating losses incurred to date and believes that a full valuation allowance against the deferred tax assets is required as of

December 31, 2016

and

2015.