Entity information:
12.
Income taxes
 
The component of deferred tax assets at December 31 are as follows:
 
 
 
2016
 
2015
 
 
 
 
 
 
 
Net operating loss carryforwards
 
$
97,936
 
$
-
 
 
The provision for income taxes for the years ended December 31 consists of the following:
 
 
 
2016
 
2015
 
 
 
 
 
 
 
Current:
 
 
 
 
 
 
 
Federal
 
$
(21,534)
 
$
129,661
 
State
 
 
3,000
 
 
73,288
 
Foreign
 
 
332,187
 
 
-
 
 
 
 
 
 
 
 
 
Total current
 
 
313,653
 
 
202,949
 
 
 
 
 
 
 
 
 
Deferred:
 
 
 
 
 
 
 
Federal
 
 
(62,068)
 
 
99,930
 
State
 
 
(35,868)
 
 
31,742
 
Foreign
 
 
-
 
 
-
 
 
 
 
 
 
 
 
 
Total deferred
 
 
(97,936)
 
 
131,672
 
 
 
 
 
 
 
 
 
Total
 
$
215,717
 
$
334,621
 
 
The Company conducts business globally and, as a result, files income tax returns in the US federal jurisdiction, state and city, and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including such jurisdictions as the US and UK. The Company is subject to income tax examinations of US federal, state, and city for 2015, 2014 and 2013 tax years and of UK for 2016. The Company is not currently under examination nor have they been notified by the authorities.
 
A reconciliation of the provision for income taxes, with the amount computed by applying the statutory Federal income tax rate for the years ended December 31 is as follows:
 
 
 
2016
 
2015
 
 
 
 
 
 
 
 
 
Tax at federal statutory rate
 
 
34.0
%
 
34.0
%
State and local taxes, net of federal benefit
 
 
4.4
 
 
10.8
 
Tax impact of foreign operations
 
 
(19.7)
 
 
-
 
Non-deductible/ non-taxable items
 
 
13.6
 
 
-
 
Net operating loss carryforwards
 
 
(10.0)
 
 
-
 
Changes in tax reserves
 
 
-
 
 
12.1
 
Others
 
 
0.8
 
 
-
 
 
 
 
 
 
 
 
 
Total
 
 
23.1
%
 
56.9
%