Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

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INCOME TAXES
12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 16 - INCOME TAXES

 

As of December 31, 2014, we estimate we will have net operating loss carryforwards available to offset future federal income tax of approximately $6 million.  These carryforwards will expire between the years 2028 through 2031.  Under the Tax Reform Act of 1986, the amount of and the benefit from net operating losses that can be carried forward may be limited in certain circumstances.  Events that may cause changes in the our tax carryovers include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period.  Therefore, the amount available to offset future taxable income may be limited.  We carry a deferred tax valuation allowance equal to 100% of total deferred assets.  In recording this allowance, we have considered a number of factors, but chiefly, our operating losses from inception.  We have concluded that a valuation allowance is required for 100% of the total deferred tax assets as it is more likely than not that the deferred tax assets will not be realized.

 

Deferred tax assets were comprised of the following as of December 31, 2014 and 2013: 

 

    2014     2013  
                 
Allowance for doubtful accounts   $ 102,000     $ 29,000  
Accrued expenses     157,000       21,000  
Current deferred tax asset     259,000       50,000  
                 
Intangible and fixed assets     (550,000 )     (218,000 )
NOL carryforward     2,300,000       2,538,000  
Long-term deferred tax asset     1,750,000       2,320,000  
                 
Total deferred tax asset     2,009,000       2,370,000  
Less valuation allowance     (2,009,000 )     (2,370,000 )
                 
Net deferred tax asset   $     $  

 

The benefit for income taxes differed from the amount computed using the U.S. federal income tax rate of 34% for December 31, 2014 and 2013 as follows:

 

    2014     2013  
             
Income tax benefit (federal and state)   $ 97,000     $ 210,0000  
Non-deductible items     (320,000 )     (18,000 )
State and other benefits included in valuation     (138,000 )     (123,900 )
Change in valuation allowance     361,000       (68,100 )
                 
Income tax benefit   $     $