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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of Deferred Income Tax Assets and Liabilities

Due to the net losses incurred, there was no income tax provision for the years ended December 31, 2016 and 2015. Deferred tax assets and liabilities as of December 31, 2016 and 2015 were as follows:


 

 

December 31,

 

 

 

2016

 

 

2015

 

Deferred Tax Assets:

 

 

 

 

 

 

Net operating loss carryforward

 

$

14,625,674

 

 

$

13,055,795

 

Allowance for bad debt

 

 

60,567

 

 

 

65,281

 

Stock-based compensation

 

 

2,223,337

 

 

 

2,167,730

 

Depreciation

 

 

19,373

 

 

 

10,702

 

Gross deferred tax asset

 

 

16,928,951

 

 

 

15,299,508

 

Less: deferred tax asset valuation allowance

 

 

(16,928,951

)

 

 

(15,299,508

)

Total net deferred tax asset

 

 

 

 

 

 

Less: Deferred tax liability - depreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net deferred taxes

 

$

 

 

$

Schedule of Reconciliation of Provision (Benefit) for Income Taxes

Reconciliation of the differences between income tax benefit computed at the federal and state statutory tax rates and the provision for income tax benefit for the years ended December 31, 2016 and 2015 was as follows:


 

 

For the Years Ended

December 31,

 

 

 

2016

 

 

2015

 

 

 

Amount

 

 

%

 

 

Amount

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax at U.S. statutory rate

 

$

(1,588,495

)

 

 

-34.00

%

 

$

(2,048,153

)

 

 

-34.00

%

State taxes, net of federal benefit

 

 

(168,053

)

 

 

-3.60

%

 

 

(218,670

)

 

 

-3.63

%

Other

 

 

127,105

 

 

 

2.72

%

 

 

(295,854

)

 

 

-4.91

%

Change in valuation allowance

 

 

1,629,443

 

 

 

34.88

%

 

 

2,562,677

 

 

 

42.54

%

 

 

$

 

 

 

0.00

%

 

$

 

 

 

0.00

%