Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

v3.3.1.900
INCOME TAXES
 12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 12 – INCOME TAXES

 

At December 31, 2015, the Company has an a net operating loss carry forward for Federal and state income tax purposes totaling approximately $1,752,000 available to reduce future income which, if not utilized, will begin to expire in the year 2032. The Company has no income tax affect due to the recognition of a full valuation allowance on the expected tax benefits of future loss carry forwards based on uncertainty surrounding realization of such assets.

 

A reconciliation of the statutory income tax rates and the Company’s effective tax rate is as follows: 

 

    For the Year Ended December 31,  
    2015     2014  
             
Statutory U.S. federal rate     34.0 %     34.0 %
State income tax, net of federal benefit     5.9 %     5.9 %
Permanent differences     (0.1 )%     (0.8 )%
Valuation allowance     (39.8 )%     (39.1 )%
                 
Provision for income taxes     0.0 %     0.0 %

 

The tax effects of the temporary differences and carry forwards that give rise to deferred tax assets consist of the following:

 

    December 31,  
    2015     2014  
             
Deferred tax assets:                
Net operating loss carry forwards   $ 698,455     $ 183,185  
Stock based compensation     621,464       64,875  
Valuation allowance     (1,319,919 )     (248,060 )
                 
    $ -     $ -  

 

The Company's major tax jurisdictions are the United States and California. All of the Company's tax years will remain open three and four years for examination by the Federal and state tax authorities, respectively, from the date of utilization of the net operating loss. The Company does not have any tax audits pending.