Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2016 and 2015, the expected income tax effect of the Company’s deferred tax assets (liabilities) consisted of the following:

	2016		2015
Deferred tax asset:
Tax effect of:
Net operating loss carryforwards	$	31,398,000	$	29,122,000
Accrued expenses		19,000		87,000
Amortization of definite lived intangible assets		––		10,000
Non-qualified stock option compensation		598,000		315,000
Depreciation		68,000		72,000
Deferred revenue		943,000		880,000
Other		1,000		139,000
Patents		––		(23,000)
Deferred gain on installment sale		(1,000)		––
State net operating loss carryforwards, net of federal tax benefit		929,000		579,000
Research tax credit carryforwards		2,433,000		2,274,000
Total deferred tax assets		36,388,000		33,455,000
Valuation allowance		(36,388,000)		(33,455,000)
Net deferred tax assets	$	-	$	-

Schedule of Effective Income Tax Rate Reconciliation

The benefit for income taxes differs from the federal statutory rate due to the following:

	2016			2015
Tax at statutory rate		(34.0)	%		(34.0)	%
State taxes, net of federal benefit		0.0			0.0
Research and development credit		(0.69)			(1.3)
Share based payment expense		0.0			1.6
Other		0.42			0.7
Removal of deferred tax asset on federal net operating losses		0.00			0.0
Establishment of deferred tax asset on state net operating losses and state deferred taxes, net of federal income tax benefits		(5.3)			(4.9)
Change in valuation allowance		39.6			37.9
Effective tax rate		0.0	%		0.0	%