NOTE 13-INCOME TAXES
The Company operates in the United States; accordingly, federal and state income taxes have been provided based upon the tax laws and rates of the U.S. The Company has incurred losses since inception and, accordingly has a net operating loss carry forward as of December 31, 2016, of approximately $916,305. This loss carry forward expires according to the following schedule:
| Year Ending December 31, |
| Amount |
| 2034 | $ | 272,000 |
| 2035 |
| 337,000 |
| 2036 |
| 307,305 |
| Total | $ | 916,305 |
The income tax provision differs from the amount of income tax determined by applying the federal income tax rate to pre- tax income from continuing operations for the years ended December 31, 2016 and 2015, due to the following:
| Description |
| 2016 |
| 2015 |
| Tax provision at expected tax rate | $ | (401,613) | $ | (514,692) |
| Application of valuation allowance |
| 401,613 |
| 514,692 |
| Income tax provision | $ | - | $ | - |
Deferred tax assets at December 31, 2016 and 2015 are comprised of net operating loss carry forwards. The amounts for tax purposes could vary from those disclosed above as the Company has not addressed the differences in valuation of share-based compensation for tax purposes.
Tax years 2011-2016; remain subject to examination by the IRS and respective states.