DEFERRED TAXES

12 Months Ended

Dec. 31, 2015

Deferred Revenue Disclosure [Abstract]

Deferred Revenue Disclosure [Text Block]

NOTE 10.  DEFERRED TAXES

The components of net deferred tax assets (liabilities) are as follows:

		December 31,
		2015		2014
Long-lived assets	$	26,875	$	(4,917)
Equity-based instruments		851,230		1,471,138
Net operating loss carryforwards		4,689,600		1,189,262
Deferred tax asset valuation allowance		(5,567,705)		(2,655,483)
	$	--	$	--

A reconciliation of our income tax provision and the amounts computed by applying statutory rates to income before income taxes is as follows:

		Year ended December 31,
		2015		2014
Income tax benefit at statutory rate	$	(2,987,334)	$	(2,356,247)
State income tax benefit, net of Federal benefit		(406,805)		(320,866)
Amortization of debt discount		561,936		291,937
Gain on derivative		(81,368)		--
Other		1,349		2,869
Valuation allowance		2,912,222		2,382,307
	$	--	$	--