INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Deferred Tax Assets and Liabilities

The effects of temporary differences that give rise to significant portions of the deferred tax assets as of December 31, 2016 and 2015 are as follows:

	For the years ended
	December 31,
	2016		2015
Deferred tax assets:
Net operating loss carryforward	$	10,934,000	$	8,359,000
Stock-based compensation		2,066,000		1,897,000
License agreements		490,000		268,000
Research and development		117,000		117,000
Technology licensing fee		185,000		185,000
Valuation allowance		(13,792,000)		(10,826,000)
Deferred tax assets, net of valuation allowance	$	-	$	-

Summary Of Expected Tax Expense Benefit Based On Federal Statutory Rates Reconciled With Actual Tax Provision Benefit

For the years ended December 31, 2016 and 2015, the expected tax expense (benefit) based on the U. S. federal statutory rate is reconciled with the actual tax provision (benefit) as follows:

	For the years ended
	December 31,
	2016		2015
U. S. federal statutory rate	$	(835,000)	$	(11,582,000)
State taxes, net of federal benefit		(286,000)		(199,000)

Permanent differences
- Change in fair value of derivative liabilities		(2,019,000)		9,477,000
- Write off of net operating loss		-		3,591,000
-Other permanent differences		46,000		12,000
Change in valuation allowance		2,966,000		(1,645,000)
Other		128,000		346,000
Income tax provision (benefit)	$	-	$	-

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Company’s effective tax rate to the statutory U.S. federal rate is as follows:

	For the years ended
	December 31,
	2016			2015
U. S. federal statutory rate		(34.0)	%		(34.0)	%
State taxes, net of federal benefit		(11.6)	%		(0.6)	%

Permanent differences
- Change in fair value of derivative liabilities		(82.2)	%		27.8	%
- Write off of net operating loss		0.0	%		10.5	%
-Other permanent differences		1.9	%		0.0	%
Change in valuation allowance		120.8	%		(4.8)	%
Other		5.2	%		1.0	%
Income tax provision (benefit)		0.0	%		0.0	%