7. INCOME TAXES
The composition of deferred tax assets at December 31, 2016 and 2015 were as follows:
|
| 2016 |
|
| 2015 |
| ||
Deferred tax assets |
|
|
|
|
|
| ||
Benefit from carryforward of net operating loss |
| $ | 2,917,000 |
|
| $ | 2,748,000, |
|
Less valuation allowance |
|
| (2,917,000 | ) |
|
| (2,748,000 | ) |
Net deferred tax asset |
| $ | - |
|
| $ | - |
|
The difference between the income tax benefit in the accompanying statement of operations and the amount that would result if the U.S. Federal statutory rate of 34% were applied to pre-tax loss for 2016 and 2015 is attributable to the valuation allowance.
At December 31, 2016, for federal income tax and alternative minimum tax reporting purposes, the Company has $8,581,000 in unused net operating losses available for carryforward to future years which will expire in various years through 2036.