Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes Tables

Summary of income tax provision (benefit)

The income tax provision (benefit) for the years ended December 31, 2014 and 2013 was as follows:

	For The Year Ended
	December 31,
	2014			2013
Federal:
Current	$	-		$	-
Deferred		(387,752	)		(625,702	)
State and local:
Current		-			-
Deferred		(161,244	)		(36,806	)
		(548,996	)		(662,508	)
Change in valuation allowance		548,996			662,508
Income tax provision (benefit)	$	-		$	-

Summary of significant portions of the deferred tax assets and liabilities

The effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2014 and 2013 are as follows:

	December 31,
	2014			2013
Deferred tax assets:
Net operating loss carryforwards	$	5,315,823		$	4,966,018
Stock-based compensation		722,782			466,078
Inventory reserves		6,090			10,949
Allowance for bad debt		17,948			89,899
Deferred Rent		14,108			-
Contingent Liability		1,910			-
Charitable contribution carryforwards		5,772			5,630
Accruals		31,007			27,352
Total deferred tax assets		6,115,440			5,565,926
Valuation allowance		(6,088,174	)		(5,539,178	)
Deferred tax assets, net of valuation allowance		27,266			26,748
Deferred tax liabilities:
Property and equipment		(27,266	)		(26,748	)
Net deferred tax assets	$	-		$	-
Change in valuation allowance	$	548,996		$	666,508

Summary of tax expense (benefit) based on the statutory rate

For the years ended December 31, 2014 and 2013, the expected tax expense (benefit) based on the U.S. federal statutory rate is reconciled with the actual tax expense (benefit) as follows:

	For The Year Ended
	December 31,
	2014			2013
US federal statutory rate		(34.0	%)		(34.0	%)
State tax rate, net of federal benefit		(4.0	%)		(2.0	%)
Permanent differences
- Stock based compensation		4.8	%		3.2	%
- Debt extinquishment		0.0	%		18.3	%
- Other		2.4	%		2.5	%
Change in valuation allowance		30.8	%		12.0	%
Income tax provision (benefit)		0.0	%		0.0	%