Note 10 - Income Taxes
The Company is current on all of its corporate tax filings. Tax year 2016 is currently under extension and we expect to file the returns by the due date.
Our net operating loss carry forward as of December 31, 2016 is $6,653,793, which may be used to offset future income taxes through 2037. Our reconciliation between the expected federal income tax benefit computed by applying the federal statutory rate to our net loss and the actual benefit for taxes on net loss for 2016 and 2015 is as follows:
|
|
| Years Ended December 31, |
| ||||
|
|
| 2016 |
| 2015 |
| ||
| Expected federal income tax benefit at statutory rate |
| $ | 95,884 |
| $ | 101,816 |
|
| State taxes |
|
| 9,870 |
|
| 10,481 |
|
| Change in valuation allowance |
|
| (105,754) |
|
| (112,297) |
|
| Income tax benefit |
| $ | — |
| $ | — |
|
Our deferred tax assets as of December 31, 2016 and 2015 were as follows:
|
|
| December 31, |
| ||||
|
|
| 2016 |
| 2015 |
| ||
| Net operating loss |
| $ | 2,495,172 |
| $ | 2,389,418 |
|
| Valuation allowance |
|
| (2,495,172) |
|
| (2,389,418) |
|
| Deferred tax assets, net of allowance |
| $ | — |
| $ | — |
|
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We have provided a valuation allowance of 100% of our net deferred tax asset due to the uncertainty of generating future profits that would allow us to realize our deferred tax assets.