NOTE 11. DEFERRED TAXES
The components of net deferred tax assets are as follows:
|
| December 31, | ||
|
| 2017 |
| 2016 |
Net operating loss carryforwards | $ | 3,446,733 | $ | 2,761,830 |
Equity-based instruments |
| 3,648,787 |
| 5,043,533 |
Long-lived assets and other |
| 427,779 |
| 504,721 |
Deferred tax asset valuation allowance |
| (7,523,299) |
| (8,310,084) |
| $ | – | $ | – |
A reconciliation of our income tax provision and the amounts computed by applying statutory rates to income before income taxes is as follows:
|
| Year ended December 31, | ||
|
| 2017 |
| 2016 |
Income tax benefit at statutory rate | $ | (2,795,089) | $ | (3,456,426) |
State income tax benefit, net of Federal benefit |
| (251,213) |
| (470,684) |
Equity-based instruments |
| (315,589) |
| – |
Amortization of debt discount |
| 391,513 |
| 251,786 |
Loss on extinguishment of debt |
| – |
| 838,379 |
Tax Cuts and Jobs Act rate change |
| 991,223 |
| – |
Other |
| (242,781) |
| 2,377 |
Valuation allowance |
| 2,218,936 |
| 2,834,568 |
| $ | – | $ | – |