Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2016 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of the Provision for Income Taxes |
The components of the provision for income taxes for the years
ended December 31, 2016 and 2015 are as follows:
|
|
|
|
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|
|
|
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| |
|
2016 |
|
|
2015 |
|
|
Current
|
|
$ |
— |
|
|
$ |
— |
|
|
Deferred
|
|
|
(2,587,731 |
) |
|
|
(4,271,483 |
) |
|
Valuation Allowance
|
|
|
2,587,731 |
|
|
|
4,271,483 |
|
|
|
|
|
|
|
|
|
|
|
Total provision for income taxes
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
| Components of Deferred Tax |
At December 31, 2016 and 2015, the Company had temporary
differences between the carrying amounts of assets and liabilities
for financial reporting purposes and their respective income tax
bases, as measured by enacted state and federal tax rates, as
follows:
|
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|
|
|
|
|
|
|
| |
|
2016 |
|
|
2015 |
|
|
Deferred tax assets (liabilities):
|
|
|
|
|
|
|
|
|
|
Net operating loss carryforward
|
|
$ |
33,186,710 |
|
|
$ |
30,701,734 |
|
|
Bad debt reserve
|
|
|
— |
|
|
|
530 |
|
|
Inventory reserve
|
|
|
— |
|
|
|
22,827 |
|
|
Sales return allowance
|
|
|
— |
|
|
|
4,188 |
|
|
Accrued vacation
|
|
|
35,132 |
|
|
|
33,896 |
|
|
Deferrals of compensation to Directors & Officers
|
|
|
9,596 |
|
|
|
9,596 |
|
|
Uniform capitalization (UNICAP)
|
|
|
— |
|
|
|
5,158 |
|
|
Non-qualified stock compensation
|
|
|
513,106 |
|
|
|
513,106 |
|
|
Restricted stock
|
|
|
42,590 |
|
|
|
42,590 |
|
|
Accrued Interest
|
|
|
— |
|
|
|
(134,222 |
) |
|
|
|
|
|
|
|
|
|
|
Total deferred tax assets, net
|
|
|
33,787,134 |
|
|
|
31,199,403 |
|
|
Less valuation allowance
|
|
|
(33,787,134 |
) |
|
|
(31,199,403 |
) |
|
|
|
|
|
|
|
|
|
|
Total net deferred taxes
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of Tax Computed at the Statutory Federal Rate |
The following is a reconciliation of tax computed at the statutory
federal rate to the income tax benefit in the statements of
operations for the years ended December 31, 2016 and 2015:
|
|
|
|
|
|
|
|
|
| |
|
2016 |
|
|
2015 |
|
|
Income tax benefit computed at statutory federal rate of 34%
|
|
$ |
(2,384,532 |
) |
|
$ |
(3,981,853 |
) |
|
State income tax benefits, net of federal expense/benefit
|
|
|
(254,584 |
) |
|
|
(425,121 |
) |
|
Change in valuation allowance
|
|
|
2,587,731 |
|
|
|
4,271,483 |
|
|
Non-deductible expenses
|
|
|
185,607 |
|
|
|
288,055 |
|
|
Other
|
|
|
(134,222 |
) |
|
|
(152,564 |
) |
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
— |
|
|
$ |
— |
|
|
| Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized
tax benefits is as follows:
|
|
|
|
|
|
Balance as of December 31, 2014
|
|
$ |
1,354,652 |
|
|
Additions based on tax positions related to the current year
|
|
|
353,814 |
|
|
Additions for the tax positions of prior years
|
|
|
— |
|
|
Reductions for the tax positions of prior years
|
|
|
— |
|
|
|
|
|
|
|
Balance as of December 31, 2015
|
|
$ |
1,708,466 |
|
|
Additions based on tax positions related to the current year
|
|
|
166,871 |
|
|
Additions for the tax positions of prior years
|
|
|
— |
|
|
Reductions for the tax positions of prior years
|
|
|
— |
|
|
|
|
|
|
|
Balance as of December 31, 2016
|
|
$ |
1,875,337 |
|
|