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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are as follows:

 

 

 

For the

Year Ended

December 31, 2016

 

 

For the

Year Ended

December 31, 2015

 

Current:

 

 

 

 

 

 

 

 

Federal

 

$

 

 

$

 

State

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred:

 

 

 

 

 

 

 

 

Federal

 

 

 

 

 

 

State

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Income tax expense (benefit)

 

$

 

 

$

 

 

Significant Components of Deferred Income Tax Assets and Liabilities

Significant components of the Company's deferred income tax assets and liabilities are as follows:

 

 

 

December 31, 2016

 

 

December 31, 2015

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Net operating loss carryover

 

$

224,381

 

 

$

623,287

 

Accounts receivable

 

 

 

 

 

5,301

 

Compensation

 

 

80,850

 

 

 

58,800

 

Inventories

 

 

 

 

 

12,594

 

Total deferred tax assets

 

 

305,231

 

 

 

699,982

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Property and equipment

 

 

2,795

 

 

 

731

 

Total deferred tax liabilities

 

 

2,795

 

 

 

731

 

Deferred tax assets, net

 

 

308,026

 

 

 

700,713

 

Valuation allowance:

 

 

 

 

 

 

 

 

Beginning of year

 

 

(700,713

)

 

 

(432,730

)

(Increase) decrease during year

 

 

392,687

 

 

 

(267,983

)

Ending balance

 

 

(308,026

)

 

 

(700,713

)

Net deferred tax asset

 

$

 

 

$

 

 

Reconciliation of Income Tax Computed at U.S. Statutory Rate to Effective Income Tax Rate

A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows:

 

 

 

For the

Year Ended

December 31, 2016

 

 

For the

Year Ended

December 31, 2015

 

Statutory U.S. federal income tax rate

 

 

35.0

%

 

 

35.0

%

Permanent differences

 

 

-0.2

%

 

 

-0.5

%

Other reconciling items

 

 

-101.8

%

 

 

-1.2

%

Change in valuation allowance

 

 

67.0

%

 

 

-33.3

%

Effective income tax rate

 

 

0.0

%

 

 

0.0

%