Note 11.  Income Taxes

At December 31, 2016, the Company had net operating loss carryforwards for income taxes of approximately $14 million, which expire during various periods through 2036. Realization of deferred income taxes as of December 31, 2016 and 2015 is not considered likely. Therefore, by applying a federal statutory rate of 35% to the carryforward amounts, a valuation allowance of approximately $4.8 million and $4.6 million has been established for the entire amount of deferred tax assets relative to the net operating loss at December 31, 2016 and 2015, respectively, resulting in an effective tax rate of 0% and no deferred tax asset recognition. The valuation allowance increased by approximately $200,000 in 2016 and $200,000 in 2015.