Annual report pursuant to Section 13 and 15(d)

TAX EXPENSE (Tables)

v3.3.1.900
TAX EXPENSE (Tables)
12 Months Ended
Dec. 31, 2015
Tax Expense Tables  
Schedule of expense (benefit) for income taxes

The expense (benefit) for income taxes consists of the following:

 

    December 31,
2015
    December 31,
2014
 
Current:            
Federal   $ -     $ -  
State     -       -  
      -       -  
Deferred:                
Federal     44,000       -  
State     -       -  
                 
Total   $ 44,000     $ -  
Schedule of effective tax rate and the statutory tax rate

The reconciliation between the Company's effective tax rate and the statutory tax rate is as follows:

 

    December 31,
2015
    December 31,
2014
 
                 
Expected Income tax expense (benefit) at statutory rate net   $ (3,694,000 )   $ (8,940,000 )
Nondeductible items     368,000       2,173,000  
Warrants expense     1,196,000       2,216,000  
Derivatives expense     (545,000 )     1,274,000  
Net operating losses     2,667,000       3,227,000  
Other     52,000       50,000  
                 
Reported income tax expense (benefit)   $ 44,000     $ -  
                 
Effective tax rate     -0.49%       0.00 %
Deferred tax assets and liabilities

The components of deferred tax assets and liabilities are as follows:

 

    December 31,
2015
    December 31,
2014
 
Deferred income tax assets:            
Allowance for bad debt   $ 74,000     $ 21,000  
Warrants expense     3,412,000       2,216,000  
Derivatives expense     729,000       1,274,000  
Net operating losses     7,029,000       3,227,000  
      11,244,000       6,738,000  
Deferred income tax liabilities:                
Depreciation     (44,000 )     -  
Total     11,200,000       6,738,000  
                 
Valuation allowance     (11,244,000 )     (6,738,000 )
                 
Net deferred tax assets   $ (44,000 )   $ -