As of December 31, 2016, the Company has net operating loss carryforwards of approximately $3,800,000 that expire, if not used, from 2024 through 2036. The valuation allowance at December 31, 2016, was $1,579,806. The net change in the valuation allowance for the year ended December 31, 2016, was an increase of $186,902. The Company paid no income taxes during the years ended December 31, 2016 and 2015. Deferred tax assets and related valuation allowance were as follows at December 31, 2016 and 2015:
| For the Years Ended December 31 | ||||||||
| 2016 | 2015 | |||||||
| Accrued liabilities | $ | 83,972 | $ | 83,972 | ||||
| Operating loss carryforwards | 1,495,834 | 1,308,932 | ||||||
| Total Deferred Income Tax Assets | 1,579,806 | 1,392,904 | ||||||
| Valuation Allowance | (1,579,806 | ) | (1,392,904 | ) | ||||
| Net Deferred Income Tax Asset | $ | – | $ | – | ||||
The following is a reconciliation of the tax benefit of pretax loss at the U.S. federal statutory rate with the benefit from income taxes:
| For the Years Ended December 31 | ||||||||
| 2016 | 2015 | |||||||
| Benefits at statutory rate (34%) | $ | (168,836 | ) | $ | (117,892 | ) | ||
| Nondeductible permanent differences | 6,862 | – | ||||||
| Change in valuation allowance | 186,902 | 135,298 | ||||||
| State tax Benefit | (24,928 | ) | (17,406 | ) | ||||
| Benefit from Income Taxes | $ | – | $ | – | ||||