Income Taxes

12 Months Ended

Dec. 31, 2014

Income Taxes

Income Taxes

Note 9 - Income Taxes

The Company has accumulated net operating losses, which can be used to offset future earnings.  Accordingly, no provision for income taxes is recorded in the consolidated financial statements. A deferred tax asset for the future benefits of net operating losses and other differences is offset by a 100% valuation allowance due to the uncertainty of the Company’s ability to utilize the losses. These net operating losses will expire in the years 2029 through 2033.

The Company had net operating loss carryforwards of $2,106,246 at December 31, 2014. These net operating loss carryforwards may be limited in accordance with Section 382 of the Internal Revenue Code of 1986, as amended, based on certain changes in ownership that have occurred and that could occur in the future. 

The tax effects (computed at 40%) of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities consist of the following:

				Current
				Period
	2013			Changes			2014
Deferred tax assets:
Net operating loss carryforwards	$	724,271			118,228		$	842,499
Valuation allowance		(724,271	)		(118,228	)		(842,499	)
Net deferred tax assets	$	-		$	-		$	-

A reconciliation of income benefit provided at the federal statutory rate of 34% to income tax benefit is as follows:

	2014			2013
Income tax benefit computed at federal statutory rate		34	%		34	%
State taxes, net of federal tax benefit		6	%		6	%
Valuation allowance		-40	%		-40	%
Effective tax rate		0	%		0	%