NOTE 12 – INCOME TAXES
The Company has a deferred tax asset as shown in the following:
| 2016 | 2015 | |||||||
| Tax loss carryforward | $ | 2,100,000 | $ | 2,616,000 | ||||
| Valuation allowance | (2,100,000 | ) | (2,616,000 | ) | ||||
| $ | — | $ | — | |||||
A valuation allowance has been recognized to offset the deferred tax assets because realization of such assets is uncertain.
The Company has net operating loss carry forwards of approximately $6,567,000 at December 31, 2016 that expire beginning in 2026. However, utilization of these losses may be limited pursuant to Section 382 of the Internal Revenue Code due to a recapitalization in 2007 and subsequent stock issuances.