The provision for (benefit from) income taxes for the years ended December 31, 2016 and 2015 are as follows, assuming a combined effective tax rate of approximately 35%.
| Years Ended | ||||||||
| December 31, | ||||||||
| 2016 | 2015 | |||||||
| Tax at statutory rate | $ | 182,515 | $ | 20,200 | ||||
| Federal and state net operating loss | 149,799 | 23,942 | ||||||
| Meals & entertainment | 83 | - | ||||||
| Life insurance | 1,572 | - | ||||||
| Tax penalty | 58 | - | ||||||
| Depreciation | 1,403 | 1,403 | ||||||
| Other | 16,179 | - | ||||||
| Change in Valuation Allowance | (310,535 | ) | (44,915 | ) | ||||
| Total income tax provision | $ | 41,092 | $ | - | ||||
The Company had deferred tax income tax assets as of December 31, 2016 and 2015 as follows:
| December 31, | ||||||||
| 2016 | 2015 | |||||||
| Net operating loss carryforwards | $ | 240,655 | $ | 552,593 | ||||
| Depreciation | 11,845 | 10,443 | ||||||
| Stock based compensation | 200,480 | 200,480 | ||||||
| Valuation allowance | (452,980) | (763,516) | ||||||
| Total net deferred tax assets | - | - | ||||||
The Company has maintained a full valuation allowance against the total deferred tax assets for all periods due to the uncertainty of future utilization.
As of December 31, 2016, the Company has net federal and state net operating loss carry forwards of approximately $601,637 that begin to expire in 2034.