Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes Tables

Summary of income tax provision (benefit)

The income tax provision (benefit) for the years ended December 31, 2016 and 2015 was as follows:

	Year Ended December 31,
	2016			2015
Federal:
Current	$	-		$	-
Deferred		(453,586	)		(269,394	)
State and local:
Current		-			-
Deferred		(53,684	)		(21,621	)
		(507,270	)		(291,015	)
Change in valuation allowance		507,270			291,015
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, 2016 and 2015 are as follows:

	December 31,
	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	6,098,963		$	5,585,989
Stock-based compensation		700,295			767,443
Inventory reserves		8,842			8,800
Allowance for bad debt		-			17,915
Deferred Revenue		3,318			2,575
Deferred Rent		-			9,824
Contingent Liability		-			1,910
Charitable contribution carryforwards		2,711			5,772
Accruals		104,397			22,491
Total deferred tax assets		6,918,526			6,422,719
Valuation allowance		(6,886,459	)		(6,379,189	)
Deferred tax assets, net of valuation allowance		32,067			43,530
Deferred tax liabilities:
Property and equipment		(32,599	)		(29,881	)
Web Development		532			(13,649	)
Deferred tax liabilities	$	(32,067	)	$	(43,530	)
Net deferred tax assets	$	-		$	-
Change in valuation allowance	$	502,270		$	291,015

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

For the years ended December 31, 2016 and 2015, the expected tax expense (benefit) based on the statutory rate is reconciled with the actual tax expense (benefit) as follows:

	Year Ended December 31,
	2016	2015
US federal statutory rate	(34.0%)		(34.0%)
State tax rate, net of federal benefit	(4.0%)		(4.0%)
Permanent differences:
Stock based compensation	2.5%		12.3%
Adjustments to prior deferred tax balances	(0.5%)		(20.7%)
Change in valuation allowance	36.0%		46.4%
Income tax provision (benefit)	0.0%		0.0%