Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income tax expense (benefit)

Income tax expense was comprised of the following:

	2014		2013
Current
Federal	$	-	$	-
State		2,400		-
	$	2,400	$	-
Deferred
Federal	$	-	$	-
State		-		-
	$	-	$	-
Expense	$	2,400	$	-

Reconciliation

A reconciliation of the statutory federal income tax rate to the effective tax rate for the years ended December 31 was as follows:

	2014			2013
Statutory federal income tax rate		34	%		34	%
State income taxes (net of federal benefit)		5.83			5.83	%
Loss on extinguishment of notes		(12.44)			0
Stock compensation		(0.31)			(14.22)
Other permanent differences		0.11			4.3
True ups		12.3			0
Change in valuation allowance		(39.5)			(29.91)
Total		(0.01)	%		(0)	%

Deferred tax effects

The components of the net deferred tax assets and liabilities are as follows:

	2014		2013
Deferred Tax Assets:
Accrued Liabilities	$	722,899	$	73,082
Intangibles		3,115,849		1,171,673
Fixed Assets		2,988		-
NOL Carryforwards		7,773,560		170,103
Inventory Reserve		3,705		-
Allowance for Doubtful Accounts		16,281		-
Gross Deferred Tax Asset		11,635,282		1,414,858
Valuation Allowance		(11,436,475)		(1,414,858)
Net Deferred Tax Assets	$	198,807	$	-
Deferred Tax Liabilities:
Acquired Contracts Intangibles		(198,807)		-
Gross Deferred Liabilities	$	(198,807)	$	-
Net Deferred Tax Assets (Liabilities)	$	0	$	-