Entity information:
Note
8.
  Income Taxes
Our provision for income taxes for the years ended
December
31,
2016
and
2015
consists of the following:
 
     
2016
  
2015
  
  Current provision:          
  Federal   $
-
 
   $
-
 
  
  State    
-
 
    
-
 
  
  Foreign    
-
 
    
-
 
  
  Total current provision    
-
 
    
-
 
  
                     
  Deferred provision (benefit):                  
  Federal    
(5,626,995
)
    
(6,645,222
)
  
  State    
(1,183,093
)
    
(955,515
)
  
  Foreign    
-
 
    
-
 
  
  Total deferred provision (benefit)    
(6,810,088
)
    
(7,600,737
)
  
  Valuation allowance    
6,810,088
 
    
7,600,737
 
  
  Consolidated income tax provision   $
-
 
   $
-
 
  
 
We provide a full valuation allowance on our net deferred tax assets because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the asset reversal periods.
 
The difference between income taxes computed by applying the statutory federal income tax rate to consolidated losses before income taxes and the consolidated provision for income taxes is attributable to the following:
 
     
2016
  
2015
  
  Federal statutory rate    
(34.0
%)
    
(34.0
%)
  
  State income taxes, net of Federal benefits    
(4.2
%)
    
(4.3
%)
  
  Stock based compensation    
7.6
%
    
0.5
%
  
  Other    
(2.6
%)
    
0.9
%
  
  Valuation allowance    
33.2
%
    
36.9
%
  
  Total    
0.0
%
    
0.0
%
  
 
The tax effects of significant temporary differences representing deferred tax assets as of
December
31,
2016
and
2015:
  
     
2016
  
2015
  
  Net operating loss carryforwards   $
51,249,822
 
   $
39,555,984
 
  
  Stock based compensation expense    
10,118,401
 
    
10,659,107
 
  
  Tax credit carryforwards and other    
1,373,979
 
    
5,717,023
 
  
       
62,742,202
 
    
55,932,114
 
  
                     
  Valuation allowance    
(62,742,202
)
    
(55,932,114
)
  
  Net deferred tax assets   $
-
 
   $
-
 
  
 
The Company had Federal net operating loss (“NOL”) carryforwards of approximately
$133.6
and
$116.3
million at
December
31,
2016
and
2015,
respectively, which begin expiring in
2016.
The Company also has certain Federal tax credit carryforwards that will expire through
2036.
The timing and manner in which these net operating loss carryforwards and credits
may
be used in any year will be limited to the Company’s ability to generate future earnings and also
may
be limited by certain provisions in the U.S. tax code. The Company has not identified any uncertain tax positions and did not recognize any adjustments for unrecognized tax benefits. The Company remains subject to examination for income tax returns dating back to
2013.