Annual report pursuant to Section 13 and 15(d)

Income taxes

v3.7.0.1
Income taxes
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income taxes
Note 9.  Income taxes:

Income taxes at the federal statutory rate are reconciled to the Company's actual income taxes as follows:

   
2016
   
2015
 
             
Federal income tax benefit at 34%
 
$
(1,453,000
)
 
$
(2,978,000
)
State income tax net of federal tax effect
   
(128,000
)
   
(263,000
)
Permanent items
   
259,000
     
424,000
 
Other
   
(20,000
)
   
(15,000
)
Valuation allowance
   
1,342,000
     
2,832,000
 
   
$
   
$
 

As of December 31, 2016, the Company has net operating loss carry forwards of approximately $99 million for federal and state tax purposes, which are available to offset future taxable income, if any, expiring through December 2035. As of December 31, 2016, the Company's subsidiary has net operating loss carry forwards of approximately $980,000 for federal and state tax purposes, which are available to offset future taxable income, if any, expiring through December 2035. A valuation allowance was recorded at December 31, 2016 due to the uncertainty of realization of deferred tax assets in the future.

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at December 31, 2016 and 2015 are as follows:

   
2016
   
2015
 
             
Deferred tax assets (liabilities):
           
Net operating loss carry forwards
 
$
36,817,000
   
$
35,649,000
 
                 
Property and equipment
   
50,000
     
43,000
 
Other
   
(22,000
)
   
6,000
 
Capital loss carryforward
   
444,000
     
 
Research and development credit
   
1,103,000
     
1,103,000
 
                 
Deferred tax asset
   
38,392,000
     
36,801,000
 
Valuation allowance
   
(38,392,000
)
   
(36,801,000
)
                 
   
$
   
$