Note 11. Income Taxes

Income tax provision (benefit) for the year ended December 31, 2016 and the nine months ended December 31, 2015 is summarized below:

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate before provision for income taxes. The sources and tax effect of the differences are as follows:

Components of the net deferred income tax assets at December 31, 2016 and 2015 were as follows:

ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of evidence, it is more than likely than not that some portion or all of the deferred tax assets will not be recognized. After consideration of all the evidence, both positive and negative, management has determined that a $7,766,100 and $4,708,800 allowance at December 31, 2016 and 2015, respectively, is necessary to reduce the deferred tax assets to the amount that will more likely than not be realized. The change in the valuation allowance for the current period is $3,157,300.

As of December 31, 2016, we have a net operating loss carry forward of approximately $21,088,800. The loss will be available to offset future taxable income. If not used, this carry forward will expire as follows:

As of December 31, 2016, we did not have any significant unrecognized uncertain tax positions.