Annual report pursuant to Section 13 and 15(d)

13. Tax (Tables)

v3.7.0.1
13. Tax (Tables)
12 Months Ended
Dec. 31, 2016
Tax Tables  
Schedule of tax benefits and provisions

The breakdown of the tax benefits and provisions is as follows for the years ended December 31:

 

    2016     2015  
Current:            
Federal   $ -     $ -  
State and local     27,331       41,149  
Total Current     27,331       41,149  
Deferred federal income tax benefit     (500,000 )     -  
                 
Net (Benefit) Provision   $ (472,669 )   $ 41,149  
Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the provision (benefit) for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows for the years ended December 31:

 

    2016     2015  
Computed tax at the federal statutory rate of 34%   $ (5,901,000 )   $ (4,849,000 )
Debt discounts     6,279,000       3,399,000  
Stock based compensation     2,019,000          
Meals and entertainment     16,000       10,000  
Valuation allowance     (2,913,000 )     1,440,000  
Federal income tax benefit   $ (500,000 )   $ -  
Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31:

 

    2016     2015  
Deferred tax assets:            
Stock based compensation   $ 1,211,000     $ 2,907,000  
Net operating loss carryforwards     5,927,000       8,303,000  
Total deferred tax assets     7,138,000       11,210,000  
Deferred tax liabilities:                
Property and equipment     (228,000 )     (3,000 )
Other     (33,000 )     62,000  
Total deferred tax liabilites     (261,000 )     59,000  
                 
Valuation Allowance     (6,377,000 )     (11,269,000 )
                 
Net deferred tax asset   $ 500,000     $ -