Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
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, 2017 and 2016 (computed by applying the U.S. Federal corporate tax rate of 34 percent to the loss before taxes) is as follows:

 

    2017     2016  
Tax benefit at U.S. statutory rate   $ 924,190     $ 509,226  
State taxes, net of federal benefit     60,548       —  
Stock and stock based compensation     (80,291 )     (362,519 )
Change in fair value of convertible bridge notes and derivatives     (426,489 )     274,724  
Amortization of preferred stock discount     (42,552 )     (46,779 )
Gain on extinguishment of liabilities     155,285       —  
Change of U.S. federal rate     (695,021 )     —  
Other permanent differences     36,973       (24,877 )
Change in valuation allowance     67,357       (349,775 )
    $ —     $ —  

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, 2017 and 2016 consisted of the following:

 

    2017     2016  
Net operating loss carry-forward   $ 1,387,476     $ 1,410,055  
Deferred tax assets – accrued salaries     —       79,412  
Deferred tax assets – accrued interest     46,069       11,269  
Depreciation expense     343       509  
Net deferred tax assets     1,433,888       1,501,245  
Valuation allowance     (1,433,888 )     (1,501,245 )
Total net deferred tax asset   $ —     $ —