Annual report pursuant to Section 13 and 15(d)

INCOME TAXES

INCOME TAXES	12 Months Ended
Dec. 31, 2015
INCOME TAXES
INCOME TAXES	NOTE 14 - INCOME TAXES At December 31, 2015 the Company had available net-operating loss carry-forwards for Federal tax purposes of approximately $30,500,000, which may be applied against future taxable income, if any, at various dates from 2015 through 2035. Certain significant changes in ownership of the Company may restrict the future utilization of these tax loss carry-forwards. At December 31, 2015 the Company had a deferred tax asset of approximately $12,200,000 representing the benefit of its net operating loss carry-forwards. The Company has not recognized the tax benefit because realization of the tax benefit is uncertain and thus a valuation allowance has been fully provided against the deferred tax asset. The difference between the Federal and State Statutory Rate of 40% and the Company’s effective tax rate of 0% is due to a decrease in the valuation allowance of approximately $4,880,000 in 2015.

INCOME TAXES

12 Months Ended

Dec. 31, 2015

NOTE 14 - INCOME TAXES

At December 31, 2015 the Company had available net-operating loss carry-forwards for Federal tax purposes of approximately $30,500,000, which may be applied against future taxable income, if any, at various dates from 2015 through 2035. Certain significant changes in ownership of the Company may restrict the future utilization of these tax loss carry-forwards.

At December 31, 2015 the Company had a deferred tax asset of approximately $12,200,000 representing the benefit of its net operating loss carry-forwards. The Company has not recognized the tax benefit because realization of the tax benefit is uncertain and thus a valuation allowance has been fully provided against the deferred tax asset. The difference between the Federal and State Statutory Rate of 40% and the Company’s effective tax rate of 0% is due to a decrease in the valuation allowance of approximately $4,880,000 in 2015.