(12) Income Taxes

Income tax benefit attributable to loss from operations differed from the amounts computed by applying the U.S. federal income tax rate of 34 percent as a result of the following:


	Nine months ended		Year ended
	December 31,		March 31,
	2016		2016
Computed "expected" tax benefit	$	(4,425,953)	$	(2,359,039)
Increase (decrease) in taxes resulting from:
Increase (decrease) in valuation allowance for net deferred tax assets		6,120,293		2,495,540
Other, net		(1,694,340)		(136,501)
Income tax expense	$	—	$	—

The tax effects of temporary difference that give rise to significant portions of the net deferred tax asset are presented below:



	December 31,		March 31,
	2016		2016
Deferred tax assets:
Research and development credit carry-forwards	$	4,073	$	4,073
Net operating loss carry-forwards		32,864,500		29,451,289
Deferred compensation		111,006		50,021
Property and equipment		122,814		133,085
Stock Compensation		985,219		981,829
Other		3,157,324		505,883
Total deferred tax assets		37,244,936		31,126,180

Deferred tax liabilities:
Intangible assets		53,128		54,666
Total deferred tax liabilities		53,128		54,666

Net deferred tax assets		37,191,808		31,071,514

Less valuation allowance		(37,191,808)		(31,071,514)

Deferred tax assets, net of valuation allowance	$	—	$	—

As of December 31, 2016 and March 31, 2016, respectively, we had net operating loss (“NOL”) carry-forwards of approximately $90.3 million and $84.8 million for U.S. income tax purposes that expire in varying amounts through 2036. Approximately $5.3 million of the net operating loss carry-forwards are attributable to stock options, the benefit of which will be credited to additional paid-in capital if realized. However, due to the provisions of Section 382 of the Internal Revenue Code, the utilization of a portion of these NOLs may be limited. Future ownership changes under Section 382 could occur that would result in additional Section 382 limitations, which could further restrict the use of NOLs. In addition, any Section 382 limitation could reduce our ability for utilization to zero if we fail to satisfy the continuity of business enterprise requirement for the two-year period following an ownership change.

The valuation allowance for deferred tax assets of $37.2 million and $31.1 million at December 31, 2016 and March 31, 2016, respectively, relates principally to the uncertainty of the utilization of deferred tax assets in various tax jurisdictions. The Company continually assesses both positive and negative evidence to determine whether it is more-likely-than-not that the deferred tax assets can be realized prior to their expiration. Based on the Company’s assessment it has determined the deferred tax assets are not currently realizable.

We have not recorded any potential liability for uncertain tax positions taken on our tax returns.

We may, from time to time, be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. Penalties are recorded in selling, general and administrative expenses and interest paid or received is recorded in interest expense or interest income, respectively, in the consolidated statements of operations.