| Reconciliation of income tax rates |
| |
|
2014 |
|
|
2013 |
|
| |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal statutory
rates |
|
$ |
(1,584,870 |
) |
|
|
34% |
|
|
$ |
(1,953,982 |
) |
|
|
34% |
|
| State income taxes |
|
|
(40,088 |
) |
|
|
1% |
|
|
|
(193,167 |
) |
|
|
3% |
|
| Permanent differences |
|
|
200,518 |
|
|
|
(4% |
) |
|
|
15,967 |
|
|
|
(0% |
) |
| Valuation
allowance against net deferred tax assets |
|
|
1,424,439 |
|
|
|
(31% |
) |
|
|
2,131,182 |
|
|
|
(37% |
) |
| Effective
rate |
|
$ |
– |
|
|
|
–% |
|
|
$ |
– |
|
|
|
–% |
|
|
| Schedule of deferred tax assets and liabilities |
| |
|
2014 |
|
|
2013 |
|
| Deferred income tax asset,
current: |
|
|
|
|
|
|
|
|
| Book to tax
differences in accounts receivable |
|
$ |
259,448 |
|
|
$ |
382,218 |
|
| Book
to tax differences in prepaid assets and accrued expenses |
|
|
(21,450 |
) |
|
|
8,425 |
|
| Total deferred income tax
asset, current |
|
|
237,998 |
|
|
|
390,643 |
|
| Less:
valuation allowance |
|
|
(237,998 |
) |
|
|
(390,643 |
) |
| Deferred
income tax asset, current, net |
|
|
– |
|
|
|
– |
|
| |
|
|
|
|
|
|
|
|
| Deferred income tax asset,
long-term: |
|
|
|
|
|
|
|
|
| Net operation loss carryforwards |
|
|
8,668,250 |
|
|
|
12,821,092 |
|
| Book to tax differences
for stock based compensation |
|
|
– |
|
|
|
6,407 |
|
| Book to tax differences
in intangible assets |
|
|
928,222 |
|
|
|
6,693,536 |
|
| Book to tax differences
in other |
|
|
– |
|
|
|
326 |
|
| Book
to tax differences in depreciation |
|
|
5,710 |
|
|
|
– |
|
| Total deferred income tax
asset, long-term |
|
|
9,602,182 |
|
|
|
(2,297,221 |
) |
| Less:
valuation allowance |
|
|
(9,602,182 |
) |
|
|
(17,224,140 |
) |
| Deferred
income tax asset, net |
|
|
– |
|
|
|
– |
|
| |
|
|
|
|
|
|
|
|
| Total
deferred income tax asset |
|
$ |
– |
|
|
$ |
– |
|
|