Income Taxes | 10. Income Taxes The Company and its subsidiaries file income tax returns in Switzerland, South Africa, the United States and Brazil. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Switzerland $ 148,693 $ (251,842) $ 232,014 $ (1,135,587) South Africa $ (79,243) (121,390) (337,553) (505,564) United States $ (62,424) (192,109) (296,409) (839,214) Brazil - - - - Total Net Income (Loss) $ 7,026 $ (565,341) $ (401,948) $ (2,480,365) Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Current tax provision: Switzerland $ - $ - $ - $ - South Africa - - - - United States - - - - Brazil - - - - Total current tax provision - $ - - $ - Deferred tax provision: Switzerland 27,588 $ (43,826) 43,347 $ (201,896) South Africa (22,021) (32,627) (94,277) (140,117) United States (21,849) (67,238) (103,743) (293,725) Brazil - - 235,375 - Change in valuation allowance 16,282 143,691 (80,702) 635,738 Total deferred provision - - - - Total $ - $ - $ - $ - The Company has determined that the future tax benefits from net operating losses are not likely to be realized in future periods and a 100 September 30, December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 6,572,160 $ 6,652,861 Less: valuation allowance (6,572,160) (6,652,861) Total $ - $ - United Switzerland South Africa States Brazil Total Statutory rate of tax 8.5%/18% 28.0% 35.0% 25.0% Three months ended September 30, 2015 (unaudited): Net income (loss) from operations before taxes $ 148,693 $ (79,243) $ (62,424) $ - $ 7,026 As calculated at the statutory rate 27,588 (22,188) (21,849) - (16,449) Permanent differences - 167 - - 167 Change in valuation reserves (27,588) 22,021 21,849 - 16,282 Provision for income taxes $ - $ - $ - $ - $ - Three months ended September 30, 2014 (unaudited): Net (loss) from operations before taxes $ (251,842) $ (121,390) $ (192,109) $ - $ (565,341) As calculated at the statutory rate (130,594) (97,452) (152,428) - (380,474) Permanent differences - 1,401 - - 1,401 Change in valuation reserves 130,594 96,051 152,428 - 379,073 Provision for income taxes $ - $ - $ - $ - $ - Nine months ended September 30, 2015 (unaudited): Net income (loss) from operations before taxes $ 232,014 $ (337,553) $ (296,409) $ - $ (401,948) As calculated at the statutory rate 43,347 (94,515) (103,743) - (154,911) Permanent differences - 238 - 235,375 235,613 Change in valuation reserves (43,347) 94,277 103,743 (235,375) (80,702) Provision for income taxes $ - $ - $ - $ - $ - Nine months ended September 30, 2014 (unaudited): Net (loss) from operations before taxes $ (1,135,587) $ (505,564) $ (839,214) $ - $ (2,480,365) As calculated at the statutory rate (201,896) (141,558) (293,725) - (637,179) Permanent differences - 1,441 - - 1,441 Change in valuation reserves 201,896 140,117 293,725 - 635,738 Provision for income taxes $ - $ - $ - $ - $ - Permanent differences are principally related to loss on disposal of property and equipment, interest and penalties and unallowable expenses. The Company and Group members remain subject to tax examinations for the year ended December 31, 2014 in Switzerland and South Africa, for the six years ended December 31, 2014 in the U.S and for the four years ended December 31, 2014 in Brazil. During December 2013 the Internal Revenue Service (the “IRS”) notified the Company of assessments totaling $ 40,000 10,000 10,000 |