Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.7.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rates Reconciliation

A reconciliation of the differences between the effective income tax rates and the statutory federal tax rates for the years ended December 31, 2016 and 2015 (computed by applying the U.S. Federal corporate tax rate of 34 percent to the loss before taxes) is as follows:

 

    2016     2015  
Tax benefit at U.S. statutory rate   $ 509,226     $ 1,202,247  
State taxes, net of federal benefit     —       —  
Stock and stock based compensation     (362,519 )     (350,942 )
Net derivative expenses     274,724       (44,659 )
Amortization of preferred stock discount     (46,779 )     (4,587 )
Other permanent differences     (24,877 )     (1,213 )
Increase in valuation allowance     (349,775 )     (800,846 )
    $ —     $ —  

Schedule of Deferred Tax Assets and Liabilities

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and liabilities for the years ended December 31, 2016 and 2015 consisted of the following:

 

    2016     2015  
Net operating loss carry-forward   $ 1,410,055     $ 1,165,617  
Deferred tax assets – accrued salaries     79,412       (14,656 )
Deferred tax assets – accrued interest     11,269       —  
Depreciation expense     509       509  
Net deferred tax assets     1,501,245       1,151,470  
Valuation allowance     (1,501,245 )     (1,151,470 )
Total net deferred tax asset   $ —     $ —