5. Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income tax benefit reconciled to tax calculated at statutory rates is as follows:

	2013			2012
Federal tax (benefit) at statutory rate	$	(368,614	)	$	(564,259	)
Expiration of net operating loss carryforwards		––			533,950
Change in valuation allowance		342,174			30,403
Other		26,440			(94	)
Provision for income taxes, net	$	––		$	––

At December 31, 2013 and 2012, the components of the Company’s deferred taxes are as follows:

	2013			2012
Deferred tax assets (liabilities)
Net operating loss carryforwards	$	7,836,904		$	7,824,444
Accrued compensation		155,084			105,767
Depreciation		13,185			4,253
Stock-based compensation		375,678			350,401
Accrued related party interest		1,190,547			938,193
Other		13,916			20,082
Total		9,585,314			9,243,140
Less:  Valuation allowance		(9,585,314	)		(9,243,140	)
Net deferred tax asset	$	––		$	––

The Company has the following net operating loss tax carryforwards available at December 31, 2013:

Year of Expiration	Net Operating Losses
2018	$	1,425,000
2019		1,234,000
2020		2,849,000
2021		4,168,000
2023		1,217,000
2024		646,000
2025		589,000
2026		873,000
2027		2,607,000
2028		2,512,000
2029		2,196,000
2030		1,232,000
2031		1,028,000
2032		437,000
2033		37,000
Total	$	23,050,000

In the event of a significant change in the ownership of the Company, the utilization of such loss and tax credit carryforwards could be substantially limited.