Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v3.6.0.2
Income taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Reconciliation of Federal Statutory Income Tax Provision To Company's Actual Provision
A reconciliation of the federal statutory income tax provision to the Company's actual provision for the years ended December 31, 2016 and 2015 is as follows:
 
 
 
2016
 
2015
Pre-tax book income
 
$
(1,161,245
)
 
$
(2,800,960
)
Expected tax at 34%
 
(394,823
)
 
(952,326
)
 
 
 
 
 
 
Permanent differences:
 
 
 
 
 
Machinery & equipment
 
5,459

 
5,251

 
Other
 
754

 
444

 
 
 
 
 
 
State taxes:
 
 
 
 
 
Current
 

 

 
Deferred
 
(96,754
)
 
120,931

 
 
 
 
 
 
Other items:
 
 
 
 
 
Federal research and development credits
 
(15,996
)
 
(16,504
)
 
Change in valuation allowance
 
96,754

 
(120,931
)
 
Deferred tax past year true-up's
 
(8,584
)
 
(47,242
)
 
 
 
 
 
 
Unbenefited operating losses
 
413,190

 
1,010,377

Income tax provision
 
$

 
$

Schedule of Deferred Tax Assets
The components of net deferred tax assets recognized in the accompanying consolidated balance sheets at December 31, 2016 and 2015 are as follows:
 
2016
 
2015
Net operating loss carryforwards
$
6,885,000

 
$
6,734,000

R&D and ITC credit carryforwards
145,000

 

Accrued expenses and other
1,740,000

 
1,297,000

Accounts receivable
11,000

 
19,000

Inventory
208,000

 
250,000

Property, plant and equipment
125,000

 
119,000

Deferred tax assets
9,114,000

 
8,419,000

Valuation allowance
(9,114,000
)
 
(8,552,000
)
Deferred tax assets, net
$

 
$
(133,000
)
Schedule of Reconciliation to Income Tax Provision
A reconciliation of the federal statutory income tax provision to the Company's actual provision for the years ended December 31, 2016 and 2015 is as follows:
 
 
 
2016
 
2015
Pre-tax book income
 
$
(1,161,245
)
 
$
(2,800,960
)
Expected tax at 34%
 
(394,823
)
 
(952,326
)
 
 
 
 
 
 
Permanent differences:
 
 
 
 
 
Machinery & equipment
 
5,459

 
5,251

 
Other
 
754

 
444

 
 
 
 
 
 
State taxes:
 
 
 
 
 
Current
 

 

 
Deferred
 
(96,754
)
 
120,931

 
 
 
 
 
 
Other items:
 
 
 
 
 
Federal research and development credits
 
(15,996
)
 
(16,504
)
 
Change in valuation allowance
 
96,754

 
(120,931
)
 
Deferred tax past year true-up's
 
(8,584
)
 
(47,242
)
 
 
 
 
 
 
Unbenefited operating losses
 
413,190

 
1,010,377

Income tax provision
 
$

 
$