Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income tax expense (benefit)

Income tax expense was comprised of the following:

	2015		2014
Current
Federal	$	-	$	-
State		(14,041)		2,400
	$	(14,041)	$	2,400
Deferred
Federal	$	-	$	-
State		-		-
	$	-	$	-
Expense	$	(14,041)	$	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:

	2015			2014
Statutory federal income tax rate		34	%		34	%
State income taxes (net of federal benefit)		0			5.83
Loss on extinguishment of notes		0			(12.44)
Stock compensation		(1.37)			(0.31)
Other permanent differences		(0.04)			0.11
True ups		(10.20)			12.3
Change in valuation allowance		(22.27)			(39.5)
Total		0.12	%		(0.01)	%

Deferred tax effects

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

	2015		2014
Deferred Tax Assets:
Accrued Liabilities	$	1,361,612	$	722,899
Intangibles		2,476,386		3,115,849
Fixed Assets		6,686		2,988
NOL Carryforwards		10,331,722		7,773,560
Inventory Reserve		-		3,705
Allowance for Doubtful Accounts		7,599		16,281
Gross Deferred Tax Asset		14,184,005		11,635,282
Valuation Allowance		(14,052,737)		(11,436,475)
Net Deferred Tax Assets		131,268		198,807
Deferred Tax Liabilities:
Acquired Contracts Intangibles		(131,268)		(198,807)
Gross Deferred Liabilities		(131,268)		(198,807)
Net Deferred Tax Assets (Liabilities)	$	-	$	-