INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income tax provision

The Company is subject to taxation in the United States and Massachusetts. The provision for income taxes for the years ended December 31, 2015 and 2014 are summarized below:

	December 31,			December 31,
	2015			2014
Current:
Federal	$	-		$	-
State		975			2,430
Total current		975			2,430
Deferred:
Federal		571,125			(846,000	)
State		(372,409	)		(424,000	)
Change in valuation allowance		(198,716	)		1,270,000
Total deferred		-			-
Income tax provision (benefit)	$	975		$	2,430

Effective Income Tax Rate

A reconciliation of income taxes computed by applying the statutory U.S. income tax rate to the Company’s loss before income taxes to the income provision is as follows:

	December 31,			December 31,
	2015			2014
U.S. federal statutory tax rate		34.00	%		34.00	%
State tax benefit, net		(0.02	)%		(0.04	)%
Gain on stock price guarantee		-			-
Other		(0.02	)%		(0.24	)%
Valuation allowance		(33.99	)%		(33.92	)%
Effective income tax rate		(0.03	)%		(0.20	)%

Components of Deferred Tax assets and liabilities

Deferred tax assets and liabilities 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 purposes.  Significant components of the Company’s deferred tax assets are as follows:

	December 31,			December 31,
	2015			2014
Deferred tax assets:
NOL's	$	16,247,000		$	16,311,000
State taxes		(308,800	)		(435,000	)
Inventory and other reserves		42,800			194,000
Depreciation and amortization		6,600			1,000
Change in value of stock		435,100			238,000
NQ stock option expense		736,700			674,000
Total deferred tax assets		17,159,400			16,983,000
Valuation allowance		(17,159,400	)		(16,983,000	)
Net deferred tax assets	$	-		$	-