Entity information:

Note 7 – Income Taxes

 

The components of the provision for income taxes are as follows:

 

    Year ended December 31,
    2016   2015
Current tax provision                
  Federal   $ (1,100,820 )   $ (941,497 )
  State     (143,630 )     (122,690 )
      (1,244,450 )     (1,064,187 )
Deferred tax provision                
  Federal     1,100,820       941,497  
  State     143,630       122,690  
      1,244,450       1,064,187  
    $ —       $ —    

 

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

 

    Year ended December 31,
    2016   2015
Current deferred tax asset (liability):                
  Inventory reserve   $ 67,430     $ 60,794  
  Warranty reserve     7,148       7,148  
  Net operating loss carryforward     3,185,120       1,940,670  
  Valuation allowance     (3,259,698 )     (2,008,612 )
      —         —    
Long-term deferred tax asset (liability)                
  Long-lived assets     112,895       124,515  
  Valuation allowance     (112,895 )     (124,515 )
      —         —    
Net deferred tax asset (liability)   $ —       $ —    

 

A reconciliation of our income tax provision and the amounts computed by applying statutory rates to income before income taxes is as follows:

 

    Year ended December 31,
    2016   2015
Income tax benefit at statutory rate   $ (1,169,297 )   $ (1,018,511 )
State income tax, net of Federal benefit     (105,092 )     (91,540 )
Amortization of debt discount     27,793       55,884  
Other     7,130       6,765  
Valuation allowance     1,239,466       1,047,402  
    $ —       $ —