Year Ended June 30,
		2017				2016
Income tax benefit at statutory tax rate		$	(992,759	)		$	(427,076	)
State tax benefit			(175,228	)			(62,241	)
Permanent differences			30,213				70,540
Stock based compensation			(41,218	)			—
Valuation allowance			1,178,992				418,777
Income tax provision		$	—			$	—

 

The benefit for income taxes for the periods indicated below are comprised of the following:

 

		Year Ended June 30,
		2017				2016
Current:
Federal		$	—			$	—
State		$	—			$	—
Deferred:
Federal		$	—			$	—
State		$	—			$	—

 

The net deferred tax asset is comprised of the following:

 

		Year Ended June 30,
		2017				2016
Deferred tax asset:
Investment in the Joint Venture Company		$	8,747,508			$	8,699,117
State deferred tax assets			2,118,225				1,942,992
Stock option expenses			125,855				470,561
Net operating losses			3,260,495				1,960,389
Valuation allowance			(14,252,083	)			(13,073,059	)
Net deferred tax assets		$	—			$	—

 

During fiscal year we had a change in our valuation allowance of approximately million. At we have U.S. federal tax loss carry-forwards of approximately million. These net operating loss carry-forwards ("NOL") will begin expiring in Use of NOLs, however, be limited if we undergo an ownership change. Generally, an ownership change occurs if certain persons or groups, increase their aggregate ownership in us by more than percentage points looking back over a rolling -year period. If an ownership change occurs, our ability to use our NOLs to reduce income taxes is limited to an annual amount, or the Section limitation, equal to the fair market value of our common stock immediately prior to the ownership change multiplied by the long term tax-exempt interest rate, which is published monthly by the Internal Revenue Service. In the event of an ownership change, NOLs can be used to offset taxable income for years within a carry-forward period subject to the Section limitation. The Company experienced an ownership change on Based upon the Company