NOTE 3 – INCOME TAXES
There was no provision for, or benefit from, income tax during the years ended December 31, 2016 and 2015 respectively. The components of the net deferred tax asset as of December 31, 2016, and 2015:
| December 31, | 2016 | 2015 | ||||||
| Operating loss carry forwards | $ | 1,528,734 | $ | 673,866 | ||||
| Depreciation & amortization | $ | (48,531 | ) | $ | (33,894 | ) | ||
| Stock-based compensation | $ | (102,191 | ) | $ | (76,084 | ) | ||
| Total Deferred Tax Assets | $ | 1,378,012 | $ | 563,888 | ||||
| Valuation allowance | $ | (1,378,012 | ) | $ | (563,888 | ) | ||
| Net Deferred Tax Asset | $ | — | $ | — | ||||
Federal and state net operating loss carry forwards at December 31, 2016 were $3,626,347. The net operating loss carry forwards expire between 2033 and 2036.
The following is a reconciliation of the amount of benefit that would result from applying the federal statutory rate to pretax loss with the provision for income taxes for the years ended December 31, 2016 and 2015, respectively:
| For the Years Ended December 31, | 2016 | 2015 | ||||||
| Tax at statutory rate (34%) | $ | (854,868 | ) | $ | (187,830 | ) | ||
| Non-deductible expenses | $ | 40,744 | $ | 25,848 | ||||
| Change in valuation allowance | $ | (814,124 | ) | $ | 161,892 | |||
| State tax benefit, net of federal tax | $ | — | $ | — | ||||
| Provision for Income Taxes | $ | — | $ | — | ||||
In June 2006, FASB issued FASB ASC 740-10-05-6. The Company adopted FASB ASC 740-10-05-6 on January 1, 2013. Under FASB ASC 740-10-05-6, tax benefits are recognized only for the tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the company's tax return that do not meet these recognition and measurement standards.
Upon the adoption of FASB ASC 740-10-05-6, the Company had no liabilities for unrecognized tax benefits and, as such, the adoption had no impact on its financial statements, and the Company has recorded no additional interest or penalties. The Adoption of FASB ASC 740-10-05-6 did not impact the Company's effective tax rates.
The Company's policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits with the income tax expense. For the years ended December 31, 2016, and 2015, the Company did not recognize any interest or penalties in its Statement of Operations, nor did it have any interest or penalties accrued in its Balance Sheet at December 31, 2016 and 2015 relating to unrecognized benefits.
The tax years 2016 and 2015 remain open to examination for federal income tax purposes and by other major taxing jurisdictions to which the Company is subject.