Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.3.1.900
Income Taxes
12 Months Ended
Dec. 31, 2015
Income Taxes [Abstract]  
Income Taxes

Note 9 – Income Taxes

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows:

 

    2015     2014  
Deferred tax assets:            
Net operating losses carry forward   $ 28,910,183     $ 22,866,340  
Less: valuation allowance     (28,910,183 )     (22,866,340 )
                 
Deferred tax assets, net   $ -     $ -  

 

As of December 31, 2015, for U.S. federal income tax reporting purposes, the Company has approximately $85.0 million of unused net operating losses (“NOLs”) available for carry forward to future years. The benefit from the carry forward of such NOLs will begin expiring during the year ended December 31, 2021. Because United States tax laws limit the time during which NOL carry forwards may be applied against future taxable income, the Company may be unable to take full advantage of its NOL for federal income tax purposes should the Company generate taxable income. Further, the benefit from utilization of NOLs carry forwards could be subject to limitations due to material ownership changes that could occur in the Company as it continues to raise additional capital. Based on such limitations, the Company has significant NOLs for which realization of tax benefits is uncertain.

  

The difference between the income tax provision and the amount that would result if the U.S. Federal statutory rate of 34% were applied to pre-tax loss for the years ended December 31, 2015, 2014 and 2013 are as follows:

 

    For the year ended  
    December 31, 2015     December 31, 2014     December 31, 2013  
                                     
Federal income taxes at 34%   $

(7,148,607

)     (34.00 )%   $ (8,393,753 )     (34.00 )%   $ (3,663,089 )     (34.00 )%
Stock-based compensation    

2,400,951

     

11.42

%     2,135,414       8.65 %     163,519       1.52 %
Change in fair value of derivatives     (1,296,188 )    

(6.16

)%     750,073       3.04 %     1,420,993       13.19 %
Other     -       - %     526,224       2.13 %     -       - %
Change in valuation allowance     6,043,844      

28.74

%     4,982,042       20.18 %     2,078,577       19.29 %
                                                 
Provision for income tax   $ -       -     $ -       -     $ -       -