• Filing Date: 2016-03-30
  • Form Type: 10-K
  • Description: Annual report
v3.3.1.900
5. INCOME TAXES
12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
INCOME TAXES

The provision for income taxes for the years ended December 31, 2015 and 2014 is summarized as follows:

 

    2015     2014  
Current:                
Federal   $        
State            
             
Deferred:                
Federal            
State            
    $     $  

 

The Company has federal and state net operating loss carry forwards of approximately $27,200,000, which begin to expire 2025 and can be used to reduce future taxable income through 2034. The Company is open for tax years for the years ended 2008 through present.

 

The tax effects of temporary differences which give rise to deferred tax assets (liabilities) are summarized as follows:

 

   YEARS ENDED DECEMBER 31, 
   2015   2014 
Net operating loss carry-forwards  $(15,977,000)  $(11,792,000)
Stock based compensation – options/warrants   3,267,000    2,686,000 
Stock issued for services   971,000    971,000 
Gain on derivative instrument   (489,000)    
Disallowed entertainment expense   52,000    45,000 
Charitable contribution limitation   11,000    10,000 
Preferred Stock   39,000    39,000 
Bad debt expense & reserves   47,000    31,000 
Penalties   1,000    1,000 
Loss on extinguishment of debt   129,000    129,000 
Beneficial conversion features   119,000    119,000 
Mobiquity-Spain – net loss   695,000    440,000 
Amortization of debt discount   246,000     
Deferred Tax Assets   (10,889,000)   (7,321,000)
Less Valuation Allowance   10,889,000    7,321,000 
Net Deferred Tax Asset  $   $ 

 

A reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows:

 

   YEARS ENDED DECEMBER 31, 
   2015   2014 
Federal Statutory Tax Rate   34.00%    34.00% 
State Taxes, net of Federal benefit   6.00%    6.00% 
Change in Valuation Allowance   (40.00%)   (40.00%)
Total Tax Expense   0.00%    0.00%