Entity information:
5.
Income Taxes
 
The Company’s net deferred tax assets are as follows:
  
 
 
December 31,
 
December 31,
 
 
 
2017
 
2016
 
Deferred tax asset
 
 
 
 
 
 
 
Provision for uncollectible other receivables
 
$
-
 
$
94,566
 
Net operating loss carryforward
 
 
632,352
 
 
848,392
 
Total deferred tax asset
 
 
632,352
 
 
942,958
 
Valuation allowance
 
 
(632,352)
 
 
(942,958)
 
Deferred tax asset, net of allowance
 
$
-
 
$
-
 
 
The income tax provision (benefit) consists of the following:
 
 
 
For the
Year Ended
December 31,
2017
 
For the
Year Ended
December 31,
2016
 
Federal
 
 
 
 
 
 
 
Current
 
$
-
 
$
-
 
Deferred
 
 
310,606
 
 
(571,663)
 
State and local
 
 
 
 
 
 
 
Current
 
 
-
 
 
-
 
Deferred
 
 
-
 
 
-
 
Change in valuation allowance
 
 
(310,606)
 
 
571,663
 
Income tax provision (benefit)
 
$
-
 
$
-
 
 
As of December 31, 2017, the Company had U.S. federal and state net operating loss carryovers (“NOLs”) of $3,011,199 available to offset future taxable income. These NOLs expire beginning in 2036. In accordance with Section 382 of the Internal Revenue Code, deductibility of the Company’s NOLs may be subject to an annual limitation in the event of a change in control as defined under the regulations.
 
In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the year ended December 31, 2017, and December 31, 2016, the change in the valuation allowance was $(310,606) and $571,663, respectively.
 
A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:
 
 
 
For the
Year Ended
December 31,
 
For the
Year Ended
December 31,
 
 
 
2017
 
2016
 
Statutory federal income tax rate
 
 
34.0
%
 
34.0
%
State and local taxes, net of federal tax benefit
 
 
0
%
 
0
%
Other
 
 
(0.6)
%
 
(0.1)
%
Change in valuation allowance
 
 
(33.4)
%
 
(33.9)
%
Income tax provision (benefit)
 
 
0.0
%
 
0.0
%
 
On December 22, 2017, the United States government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act, or the Tax Act. The Tax Act significantly revises the existing tax law by, among other things, lowering the United States corporate income tax rate from 35% to 21% beginning in 2018. The Company reviewed and incorporated the impact of the Tax Act in its tax calculations and disclosures. The primary impact on the Company stems from the re-measurement of its deferred taxes at the new corporate tax rate of 21% for the year ending December 31, 2017, which reduced the Company's net deferred tax assets, before valuation allowance, by $391,456. Due to the full valuation allowance, the change in deferred taxes was fully offset by the change in valuation allowance. As a result, the Tax Act did not have a significant impact on the Company's Consolidated Financial Statements for the year ended December 31, 2017.