7. Provision for Income Taxes	3 Months Ended
Mar. 31, 2018
Notes to Financial Statements
7. Provision for Income Taxes	For interim financial reporting, we estimate the effective tax rate for tax jurisdictions which is applied to the year-to-date income. For the quarter ended March 31, 2018, our effective tax rate was 20%. We recognized approximately a $224,000 reduction in taxable income during the quarter ended March 31, 2018 from net operating loss carry forwards expected to be realized during 2018 which resulted in $40,000 of tax benefits. As of March 31, 2018, the Company has federal and state net operating loss carry-forwards of $23,104,733 and $16,281,250, which expire between 2029 and 2036. Utilization of the Company’s net operating loss carry-forwards are subject to annual limitations of approximately $900,000 per year under Internal Revenue Code section 382 due to a previous change in ownership. Due to the cumulative previous losses incurred by the Company, the Company is unable to conclude that it is more likely than not that it will realize its deferred tax assets in excess of the deferred tax liability and, accordingly, has recorded a valuation allowance to fully offset such amounts at December 31, 2017 and March 31, 2018.

7. Provision for Income Taxes

3 Months Ended

Mar. 31, 2018

For interim financial reporting, we estimate the effective tax rate for tax jurisdictions which is applied to the year-to-date income. For the quarter ended March 31, 2018, our effective tax rate was 20%. We recognized approximately a $224,000 reduction in taxable income during the quarter ended March 31, 2018 from net operating loss carry forwards expected to be realized during 2018 which resulted in $40,000 of tax benefits.

As of March 31, 2018, the Company has federal and state net operating loss carry-forwards of $23,104,733 and $16,281,250, which expire between 2029 and 2036. Utilization of the Company’s net operating loss carry-forwards are subject to annual limitations of approximately $900,000 per year under Internal Revenue Code section 382 due to a previous change in ownership.

Due to the cumulative previous losses incurred by the Company, the Company is unable to conclude that it is more likely than not that it will realize its deferred tax assets in excess of the deferred tax liability and, accordingly, has recorded a valuation allowance to fully offset such amounts at December 31, 2017 and March 31, 2018.