Income tax benefit reconciled to tax calculated at statutory rates is as follows:

		2017			2016
Federal tax (benefit) on consolidated net loss at statutory rate		$	(855,136)		$	(2,734,067)
Change in valuation allowance			(3,419,114)			38,090
Add back tax benefit on loss attributable to non-controlling interest in subsidiary			––			396,415
Book loss related to joint venture deconsolidation			––			900,910
Basis limited on joint venture loss			––			429,450
Basis difference related to investment in joint venture			(110,114)			705,500
Return to provision			(1,037,754)			––
Discrete due to joint venture deconsolidation			––			245,854
Federal rate change true-up			5,421,298			––
Other			820			17,848
Benefit for income taxes, net		$	––		$	––

 

At December 31, 2017 and 2016, the components of the Company’s deferred taxes are as follows:

 

		2017			2016
Deferred tax assets (liabilities)
Net operating loss carryforwards		$	8,162,123		$	11,956,967
Accrued compensation			31,844			35,249
Depreciation			42,688			46,975
Section 263a inventory adjustment			29,171			43,787
Stock-based compensation			688,148			765,928
Outside basis difference in joint venture			(224,725)			(705,500)
Other			28,232			33,189
Total			8,757,481			12,176,595
Less: Valuation allowance			(8,757,481)			(12,176,595)
Net deferred tax asset		$	––		$	––

 

The Company has the following net operating loss tax carryforwards available at December 31, 2017:

 

Year of Expiration		Net Operating  Losses
2018		$	1,425,000
2019			1,234,000
2020			2,849,000
2021			4,168,000
2023			1,217,000
2024			646,000
2025			589,000
2026			873,000
2027			2,607,000
2028			2,512,000
2029			2,196,000
2030			1,232,000
2031			1,028,000
2032			437,000
2033			37,000
2034			6,409,000
2035			3,093,000
2036			4,995,000
2037			1,320,000
Total		$	38,867,000

 

Based on historical losses and potential future changes in the ownership of the Company, the utilization of such loss and tax credit carryforwards could be substantially limited.