The following is a summary of the components giving rise to the income tax provision (benefit) for the years ended December 31, 2016, 2015 and 2014.

  

		2016			2015			2014
Current:
Federal		$	-		$	-		$	-
State			-			-			-
Total current			-			-			-
Deferred:
Federal			(2,424,497)			(3,372,964)			(3,494,787)
State			21,452			(155,352)			160,319
Total deferred			(2,403,045)			(3,528,316)			(3,334,468)
Change in valuation allowance			2,403,045			3,528,316			3,334,468
		$	-		$	-		$	-

The provision (benefit) for income tax varies from that which would be expected based on applying the statutory federal rate to pre-tax accounting loss as follows:

 

		2016			2015			2014
Statutory federal rate			(34.0)	%		(34.0)	%		(34.0)	%
Other items			(0.2)			0.0			0.6
Derivative liability			11.9			(0.5)			8.4
Stock based compensation			1.5			3.1			2.5
State tax provision, net of federal benefit			0.1			(0.9)			1.1
Valuation allowance			20.7			32.3			21.4
Effective tax rate (benefit) provision			0.0	%		0.0	%		0.0	%

Individual components of deferred taxes consist of the following as of December 31:

 

		2016			2015			2014
Deferred tax assets:
Net operating loss carry-forward		$	11,626,143		$	7,745,734		$	4,775,536
Accounts receivable reserve			3,499			3,499			-
Inventory			96,934			38,707			17,713
Stock-based compensation			282,850			1,599,916			809,319
Start-up expenditures			477,917			514,680			388,130
Loss on equity investment			139,676			68,877			35,398
Severance liability			69,860			147,070			218,450
Other			21,423			9,272			6,561
			12,718,302			10,127,755			6,251,107
Deferred tax liabilities:
Fixed assets			(316,232)			(227,186)			(80,251)
Patents and trademarks			(807,137)			(767,044)			(624,010)
Other intangible assets			(138,713)			(80,349)			(21,986)
			(1,262,082)			(1,074,579)			(726,247)
Valuation allowance			(11,456,220)			(9,053,176)			(5,524,860)
Net deferred taxes		$	-		$	-		$	-