Annual report pursuant to Section 13 and 15(d)

10. Income Taxes (Tables)

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10. Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Provisions for income taxes

For the years ended December 31, 2018 and 2017 the provisions for income taxes were as follows:

 

 

    2018   2017
Federal – current   $ -   $ -
State – current     -     -
Foreign – current     -     -
Total   $ -   $ -
Net deferred tax assets and liabilities

Significant components of our net deferred tax assets and liabilities as of December 31, 2018 and 2017 are as follows:

 

             
    2018   2017
Deferred tax assets (liabilities):            
Net operating loss carryforwards   $ 11,621,000   $ 9,935,000
Stock based compensation     3,551,000     3,305,000
Accruals     16,000     23,000
Depreciation and amortization     4,759,000     4,575,000
Other compensation     20,000     41,000
Total deferred tax assets     19,967,000     17,879,000
Valuation allowance for net deferred tax assets     (19,967,000)     (17,879,000)
Total   $ -   $ -
Reconciliation of federal statutory income tax rate to our effective income tax rate

The difference between the provision for income taxes and income taxes computed using the U.S. federal income tax rate for the years ended December 31, 2018 and 2017 was as follows:

 

 

    2018   2017
Computed expected tax expense   $ (1,515,000)   $ (2,022,000)
State taxes, net of federal benefit     (630,000)     (447,000)
Effect of tax rate changes on deferred tax assets and liabilities     -     7,657,000
Expiration of NOL carryforwards     44,000     188,000
Other     13,000     37,000
Change in valuation allowance     2,088,000     (5,413,000)
Total   $ -   $ -