The reconciliation between the expected federal income tax benefit computed by applying the Federal statutory rate to loss before income taxes and the actual benefit for taxes on loss for the years ended and is as follows:

 

		2017				2016
Expected income tax benefit at statutory rate		$	(836,000	)		$	(1,537,000	)
State taxes, net of federal benefit			(75,000	)			(138,000	)
Permanent differences and other			3,000				(13,000	)
Change in valuation allowance			908,000				1,688,000
Income tax benefit		$	-			$	-

 

The Company has net operating loss carry-forwards (“NOLs”) for tax purposes of approximately as of These NOLs expire on various dates through

 

The utilization of the NOLs be limited under Section of the Internal Revenue Code.

 

The Company

 

 

		2017				2016
NOLs – noncurrent		$	20,087,000			$	19,705,000
Stock-based compensation - current			5,589,000				5,392,000
Property and equipment – noncurrent			2,014,000				2,014,000
Deferred compensation - noncurrent			2,017,000				1,688,000
Gross deferred tax assets			29,707,000				28,799,000
Valuation allowance			(29,707,000	)			(28,799,000	)
Net deferred tax assets		$	-			$	-

 

The Company has provided a valuation allowance of of its net deferred tax asset due to the uncertainty of generating future profits that would allow for the realization of such deferred tax assets.