Annual report pursuant to Section 13 and 15(d)

Income Taxes

v2.4.1.9
Income Taxes
 12 Months Ended
Dec. 31, 2014
Income Taxes  
Income Taxes

 

10.  Income Taxes

 

The Company has temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and their respective income tax basis, as measured by enacted state and federal rates as follows:

 

December 31

 

2014

 

2013

 

 

 

 

 

 

 

Deferred tax assets:

 

 

 

 

 

Net operating loss carryforwards

 

$
29,263,100

 

$
23,075,700

 

Charitable contributions

 
500

 
500

 

Inventory Reserves

 
152,000

 
144,000

 

Stock-based compensation

 
107,900

 
101,500

 

Total deferred tax assets

 
29,523,500

 
23,321,700

 

Deferred tax liabilities:

 

 

 

 

 

Depreciation

 
(85,700

)
(84,100

)

Amortization

 
123,500

 
121,000

 

Total deferred tax assets (liabilities)

 
37,800

 
36,900

 

Net deferred tax assets

 
29,561,300

 
23,358,600

 

Valuation allowance

 
(29,561,300

)
(23,358,600

)

 

As of December 31, 2014, the Company had net operating loss carry forwards of approximately $77.8 million to offset future taxable income which expire in various years through 2034. A valuation allowance is recorded to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely than not that a portion or none of the deferred tax assets will be realized. After consideration of all the evidence, including reversal of deferred tax liabilities, future taxable income and other factors, management has determined that a full valuation allowance is necessary as of December 31, 2014 and 2013. The valuation allowance increased by $6,202,700 and $4,962,500 during 2014 and 2013, respectively.

 

The Company had no income tax expense or income tax benefit for 2013 and 2014 due to incurrence of net operating losses.  The Company does not believe there are any additional tax refund opportunities currently available.