A reconciliation of the U.S. Federal statutory income tax rate to the effective income tax rate is as follows:

 

		Year Ended December 31, 2016			Year Ended December 31, 2015
Tax expense at federal statutory rate			34	%		34	%
State tax expense, net of federal tax effect			(1)	%		5	%
Permanent timing differences			0	%		0	%
Deferred income tax asset valuation allowance			(34)	%		(39)	%
Effective income tax rate			(1)	%		0	%

Significant components of the Company’s deferred income tax assets are as follows:

 

		December 31, 2016			December 31, 2015
Inventory		$	21,000		$	22,000
Inventory allowance			175,000			169,000
Allowance for doubtful accounts			19,000			19,000
Accrued compensation			32,000			38,000
Stock based compensation			230,000			236,000
Deferred wages payable			28,000			22,000
Depreciation – Property, Plant & Equipment			(12,000)			(15,000)
Sales tax reserve			5,000			15,000
Net operating loss carry-forward			4,704,000			4,560,000
Total gross deferred income tax assets			5,202,000			5,066,000
Less deferred income tax assets valuation allowance			(5,202,000)			(5,066,000)
Net deferred income tax assets		$	0		$	0