INCOME TAXES

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 13 – INCOME TAXES

	Year ended December 31,
	2015			2014
United States	$	(35,853,893	)	$	(904,687	)
Outside United States		(825,276	)		-
Income (loss) before provision for income taxes, net	$	(36,679,169	)	$	(904,687	)

For 2015 there is no provision for income tax as the Company had a tax loss for United States and Foreign activities. 

The Components of deferred tax assets and liabilities are as follows:

	Year ended December 31,
	2015			2014
Deferred tax assets:
Net operating loss carry-forward	$	1,086,609		$	811,455
Depreciation and amortization		-			3,018
Stock options		2,378,259			-
Total deferred tax assets		3,464,868			814,473
Less: Valuation allowance		(2,621,446	)		(814,473	)
Net deferred tax assets		843,422			-
Deferred tax liabilities:
Depreciation and amortization		(9,034	)		-
Debt issuance costs		(165,704	)		-
Note discount		(668,684	)		-
Total deferred tax liabilities		(843,422	)		-
Total deferred tax asset/liabilities, net	$	-		$	-

As of December 31, 2015, the Company has available federal net operating loss carry forward of $2.9 million, state net operating loss carry of $2.9 million and various foreign net operating loss carry forwards, the most significant of which expire from 2020 through 2035.

The Company assess the recoverability of its net operating loss carry forwards and other deferred tax assets and records a valuation allowance to the extent recoverability does not satisfy the “more likely than not” recognition criteria. The Company continues to maintain the valuation allowance until sufficient positive evidence exists to support full or partial reversal. As of December 31, 2015 the Company had a valuation allowance totaling $2.6 million against its deferred tax assets, net of deferred tax liabilities, due to insufficient positive evidence, primarily consisting of losses within the taxing jurisdictions that have tax attributes and deferred tax assets.

The table below shows reconciliation from the U.S. Federal statutory income rate of 34.0% to the effective income tax rate:

	Year ended December 31,
	2015			2014
Federal statutory rate		34.00	%		34.00	%
State tax rate		3.63	%		1.00	%
Permanent difference		-30.32	%		0.00	%
Change in valuation allowance		-7.31	%		-35.00	%
Total tax (benefit) provision		0.00	%		0.00	%