NOTE 14 – Income Taxes
The Company is subject to federal income taxes in the United States. The Company has had not net yet had net income on which to pay income taxes and therefore has not yet paid any income taxes, nor are there any income taxes owing. Income taxes at the statutory rate are reconciled to the Company's actual income taxes as follows:
| Income tax benefit at statutory rate resulting from net operating Loss carry-forward |
|
| (35 | %) |
| Deferred income tax valuation allowance |
|
| 35 | % |
| Actual tax rate |
|
| 0 | % |
The Company's deferred tax assets, valuation allowance, and change in valuation allowance are as follows ("NOL" denotes Net Operating Loss):
| Year Ended |
| Estimated NOL Carry-forward |
|
| NOL Expires |
|
| Estimated Tax Benefit from NOL |
|
| Valuation Allowance |
|
| Net Tax Benefit |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
| 2010 |
| $ | (2,163,191 | ) |
|
| 2030 |
|
| $ | (757,117 | ) |
| $ | 757,117 |
|
| $ | — |
|
| 2011 |
| $ | (2,707,508 | ) |
|
| 2031 |
|
| $ | (947,628 | ) |
| $ | 947,628 |
|
| $ | — |
|
| 2012 |
| $ | (2,895,416 | ) |
|
| 2032 |
|
| $ | (1,013,396 | ) |
| $ | 1,013,396 |
|
| $ | — |
|
| 2013 |
| $ | (3,912,278 | ) |
|
| 2033 |
|
| $ | (1,369,297 | ) |
| $ | 1,369,297 |
|
| $ | — |
|
| 2014 |
| $ | (2,557,259 | ) |
|
| 2034 |
|
| $ | (895,040 | ) |
| $ | 895,040 |
|
| $ | — |
|
| 2015 |
| $ | (2,397,312 | ) |
|
| 2035 |
|
| $ | (839,059 | ) |
| $ | 839,059 |
|
| $ | — |
|
| 2016 |
| $ | (2,022,201 | ) |
|
| 2036 |
|
| $ | (707,770 | ) |
| $ | 707,770 |
|
| $ | — |
|
|
|
| $ | (18, 655,165 | ) |
|
|
|
|
| $ | (6,529,307 | ) |
| $ | 6,529,307 |
|
| $ | — |
|
The total valuation allowance for the year ended December 31, 2016 is $6,529,307 which increased by $707,770 for the year ended December 31, 2016.
As of December 31, 2016 and December 31, 2015, the Company has no unrecognized income tax benefits. The Company's policy for classifying interest and penalties associated with unrecognized income tax benefits is to include such items as tax expense. No interest or penalties have been recorded during the years ended December 31, 2016 and December 31, 2015 and no interest or penalties have been accrued as of December 31, 2016 and December 31, 2015. As of December 31, 2016 and December 31, 2015, the Company did not have any amounts recorded pertaining to uncertain tax positions.
The tax years from 2010 and forward remain open to examination by federal and state authorities due to net operating loss and credit carry-forwards. The Company is currently not under examination by the Internal Revenue Service or any other taxing authorities.