Entity information:
INCOME TAXES
The components of the Company’s net deferred income taxes are as follows (rounded):
 
December 31,
2016
December 31,
2015
Deferred tax assets:
 
 
Net operating loss carry forwards
$
17,875,000

$
15,649,000

Accrued expenses
256,000

187,000

Stock option and warrant expenses
804,000

618,000

Accounts receivable
90,000

52,000

Deferred rent
36,000

44,000

Other
3,000

3,000

Total deferred tax assets
19,064,000

16,553,000

Valuation allowance
(18,475,000
)
(15,871,000
)
Net deferred tax assets
589,000

682,000

 
 
 
Deferred tax liabilities:
 
 
Fixed and tangible assets
(589,000
)
(682,000
)
Total deferred tax liabilities
(589,000
)
(682,000
)
 
 
 
Total deferred tax assets (liabilities)
$
—

$
—



The following summary reconciles differences from taxes at the federal statutory rate with the effective rate:
 
Years Ended December 31,
 
2016
2015
Federal income tax at statutory rates
(34.0
)%
(34.0
)%
Change in deferred tax asset valuation allowance
39.0
 %
28.8
 %
Deferred state taxes
(3.2
)%
(2.5
)%
Non-deductible expenses:
 
 
Meals & entertainment
0.4
 %
0.3
 %
Change in fair value of warrants
—
 %
6.4
 %
ISO stock compensation
1.3
 %
0.7
 %
Change in state deferred rate
(4.2
)%
—
 %
Other
0.7
 %
0.3
 %
Income taxes (benefit) at effective rates
—
 %
—
 %


The Company has incurred net losses for tax purposes every year since inception. At December 31, 2016, the Company had approximately $47,080,000 in net operating loss carryforwards for U.S. federal and state income tax purposes that expire in various amounts between the years of 2026 and 2036. The Company's ability to deduct its historical net operating losses may be limited in the future due to IRC Section 382 as a result of the substantial issuances of common stock in 2012 through 2015. Certain of the Company's net operating losses acquired in connection with the Ebyline acquisition also may be limited by IRC Section 382. The change in valuation allowance for the twelve months ended December 31, 2016 and 2015 was an increase of $2,604,000 and $4,648,000, respectively, resulting primarily from net operating losses generated during the periods.