7. Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

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

	2015		2014
Federal tax (benefit) at statutory rate	$	(1,698,428)	$	(1,122,270)
Change in valuation allowance		1,430,291		1,122,900
Add back tax benefit on loss attributable to non-controlling interest in subsidiary		265,690		––
Other		2,447		(630)
Benefit for income taxes, net	$	––	$	––

At December 31, 2015 and 2014, the components of the Company’s deferred taxes are as follows:

	2015			2014
Deferred tax assets (liabilities)
Net operating loss carryforwards	$	11,080,303		$	10,046,713
Accrued compensation		120,344			170,161
Depreciation		21,835			14,282
Section 263a inventory adjustment		79,110			20,233
Stock-based compensation		565,349			434,740
Suspended loss of subsidiary		246,241			––
Other		25,323			22,085
Total		12,138,505			10,708,214
Less:  Valuation allowance		(12,138,505	)		(10,708,214	)
Net deferred tax asset	$	––		$	––

The Company has the following net operating loss tax carryforwards available at December 31, 2015:

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
2034		6,427,000
2035		3,112,000
Total	$	32,589,000

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.