Note 11 - Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

11. Income Taxes   

Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. Federal income tax of 34% to pretax income from continuing operations as a result of the following:

	December 31, 2015			December 31, 2014
Provision (benefit) at statutory rate	$	177,000		$	(966,000	)
Change in valuation allowance		(177,000	)		966,000
	$	-		$	-

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014, are presented below:

	December 31, 2015			December 31, 2014
Deferred tax assets:
Net operating loss carryforward	$	6,953,000		$	6,776,000
Deferred tax assets		6,953,000			6,776,000
Deferred tax liabilities:		-			-
Net deferred tax assets		6,953,000			6,776,000
Valuation allowance		(6,953,000	)		(6,776,000	)
	$	-		$	-

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. The Company’s deferred tax asset of approximately $6,953,000 and $6,776,000 at December 31, 2015 and 2014, respectively, was subject to a valuation allowance of $6,953,000 and $6,776,000 at December 31, 2015 and 2014, respectively, because of uncertainty regarding the Company’s ability to realize future tax benefits associated with the deferred tax assets. Deferred tax assets were comprised primarily of net operating loss carryovers under the cash method of accounting used by the Company for federal income tax reporting. The valuation allowance increased by $177,000 in 2015 and decreased by $966,000 in 2014, due to the changes in the Company’s net operating loss carryover amounts.

At December 31, 2015, the Company has net operating loss carryforwards of approximately $20,452,000 for federal income tax purposes expiring in 2015 through 2035. At December 31, 2014, the Company has net operating loss carryforwards of approximately $19,930,000 for federal income tax purposes expiring in 2014 through 2034. The ability of the Company to utilize these carryforwards may be limited should changes in stockholder ownership occur.

The difference between the reported income tax provision and the benefit normally expected by applying the statutory rate to the loss before income taxes results from the change during 2015 and 2014 of the deferred tax asset valuation allowance. As a result, the reported effective tax rate is 0%.