Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.3.1.900
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2015
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, 2015 and 2014 are as follows:

 

     2015      2014  

Current

   $ —        $ —    

Deferred

     (4,271,483      (2,052,871

Valuation Allowance

     4,271,483         2,052,871   
  

 

 

    

 

 

 

Total provision for income taxes

   $ —        $ —    
  

 

 

    

 

 

 
Components of Deferred Tax

At December 31, 2015 and 2014, 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:

 

     2015      2014  

Deferred tax assets (liabilities):

     

Net operating loss carryforward

   $ 30,701,734       $ 26,440,553   

Bad debt reserve

     530         432   

Inventory reserve

     22,827         18,885   

Sales return allowance

     4,188         4,755   

Accrued vacation

     33,896         29,267   

Deferrals of compensation to Directors & Officers

     9,596         9,596   

Uniform capitalization (UNICAP)

     5,158         2,958   

Non-qualified stock compensation

     513,106         513,106   

Restricted stock

     42,590         42,590   

Accrued Interest

     (134,222      (134,222
  

 

 

    

 

 

 

Total deferred tax assets, net

     31,199,403         26,927,920   

Less valuation allowance

     (31,199,403      (26,927,920
  

 

 

    

 

 

 

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, 2015 and 2014:

 

     2015      2014  

Income tax benefit computed at statutory federal rate of 34%

   $ (3,981,853    $ (1,968,437

State income tax benefits, net of federal expense/benefit

     (425,121      (210,160

Change in valuation allowance

     4,271,483         2,052,871   

Non-deductible expenses

     288,055         110,518   

Other

     (152,564      15,208   
  

 

 

    

 

 

 

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, 2013

   $ 1,241,781   

Additions based on tax positions related to the current year

     112,871   

Additions for the tax positions of prior years

     —    

Reductions for the tax positions of prior years

     —    
  

 

 

 

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