NOTE 10 - INCOME TAXES

As of December 31, 2016 and 2015 the Company had net operating loss carryforwards of approximately $10,974,000 and $12,242,000 respectively, which will expire beginning at the end of 2019.  A valuation allowance has been provided for the deferred tax asset as it is uncertain whether the Company will have future taxable income. A reconciliation of the benefit (expense) for income taxes with amounts determined by applying the statutory federal income rate of (34%) to the loss before income taxes is as follows: 

Significant components of the Company’s deferred tax liabilities and assets at December 31, 2016 and 2015 are as follows:

As of December 31, 2016 open Federal income tax years subject to examination include the tax years ended December 31, 2015 through 2013. At December 31, 2016, net operating loss (“NOL”) carryforwards expiring through 2036 were as follows:

The net change in the valuation allowance is a decline of $431,227 which resulted from a current year addition of net operating loss carryforwards asset of $507,853, offset by the expiration of $2,762,000 of net operating loss carryforward which reduced the net operating loss carryforwards asset by $939,080.