• Filing Date: 2018-04-17
  • Form Type: 10-K
  • Description: Annual report
v3.8.0.1
6. INCOME TAXES
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
INCOME TAXES

The provision for income taxes for the years ended December 31, 2017 and 2016 is summarized as follows:

 

    2017    2016 
Current:          
Federal  $     
State        
         
Deferred:          
Federal        
State        
   $   $ 

 

The Company has federal and state net operating loss carry forwards of approximately $60,876,000, 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, 
   2017   2016 
Net operating loss carry-forwards  $(24,351,000)  $(20,261,000)
Stock based compensation – options/warrants   3,778,000    3,540,000 
Stock issued for services   971,000    971,000 
Gain on derivative instrument   (2,361,000)   (1,011,000)
Disallowed entertainment expense   59,000    56,000 
Charitable contribution limitation   11,000    11,000 
Preferred Stock   39,000    39,000 
Bad debt expense & reserves   47,000    47,000 
Penalties   1,000    1,000 
Loss on extinguishment of debt   1,743,000    114,000 
Beneficial conversion features   119,000    119,000 
Mobiquity-Spain – net loss   830,000    830,000 
Impairment of long lived assets   89,000    89,000 
Stock issued for interest   376,000     
Nondeductible insurance   10,000     
Stock incentives   24,000     
Derivative expense   514,000     
Amortization of debt discount   2,246,000    1,311,000 
Deferred Tax Assets   (15,855,000)   (14,144,000)
Less Valuation Allowance   15,855,000    14,144,000 
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, 
   2016   2015 
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%