INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

The components of the income tax provisions for 2015 and 2014 are as follows:

	2015			2014
Current provision:
Federal	$	-		$	-
State		-			-

Deferred benefit:
Federal		(485,644	)		(639,913	)
State		(84,988	)		(112,926	)
		(570,632	)		(752,839	)
Change in valuation allowance		570,632			752,839
Total Provision	$	-		$	-

The difference between the income tax provision and income taxes computed using the U. S. federal income tax rate of 34% consisted of the following:

	2015			2014
Provision at statutory rate		34.0	%		34.0	%
State taxes, net of federal benefit		5.8	%		5.8	%
Nondeductible and other items		(8.9	%)		(8.9	%)
Change in valuation allowance		(30.9	%)		(30.9	%)
Total		(0.0	%)		(0.0	%)

Significant components of the Company's deferred taxes as of December 31, 2015 and 2014 are as follows:

	2015			2014
Deferred tax assets:
Net operating loss carry forwards	$	247,200		$	1,427,000
Share-based compensation		280,190			783,494
Accrual to cash		215,476			384,886
Other		1,280,651			65,418
Total deferred tax assets		2,023,517			2,660,800
Valuation allowance		(1,966,917	)		(2,521,561	)
		56,600			135,239

Deferred tax liabilities:
Tax deductible licensing agreement		(56,600	)		(135,233	)
Accrual to cash		-			-
Other		-			-

Total deferred tax liabilities		(56,600	)		(135,239	)

Net deferred tax assets (liabilities)	$	-		$	-