8. Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Significant components of the provision for taxes based on income are as follows for the years ended December 31:

		2015		2015
US Federal	$	–	$	–
US State		–		–
Foreign		–		10,217
Total Current		–		10,217
Deferred		–		(41,137	)
Total provision (benefit) for income taxes	$	–	$	51,354

The totals above include current taxes from discontinued operations of $- and $10,217 in 2015 and 2014, respectively. The income tax expense (benefit) from continuing operations was $- and $51,354 in 2015 and 2014, respectively.

Significant temporary differences that give rise to the deferred tax assets as of December 31, 2014 and 2013 follow:

		2015			2014
Deferred tax assets/(liabilities):
Net operating loss carryforwards	$	217,318		$	218,334
Allowance for doubtful accounts		6,445			6,445
Other		(20,164	)		–
Net deferred tax assets	$	203,599		$	224,779

The Company has federal net operating loss carryforwards totaling $518,061 and $705,778 in state carryforwards. These net operating losses expire from 2021 through 2031. The Company has not recorded any valuation allowance against these deferred tax assets.

Tax years that remain open by the Internal Revenue Service and the California Franchise Tax Board are 2011 through 2015. Additionally, NOLs from earlier years may be examined when they are utilized.

Tax rate reconciliation
	2015			2014
Federal tax rate		34.0	%		34.0	%
State taxes, net of benefit		5.8	%		5.8	%
Non-deductible tax expenses		16.6	%		13.6	%
Rate difference		(3.3	)%		(3.3	)%
NOL true-up adjustment		–			–	%
Other		(64.6	)%		1.6	%
Effective tax rate		(15.4	)%		51.7	%