| Deferred income tax assets and liabilities |
Significant components of the Company's deferred income tax
assets and liabilities are as follows:
| |
|
December 31, 2012 |
|
|
December 31, 2011 |
|
| Deferred tax assets: |
|
|
|
|
|
|
| Net operating loss |
|
$ |
3,649,651 |
|
|
$ |
2,064,725 |
|
| Allowance for doubtful accounts |
|
|
261,946 |
|
|
|
17,637 |
|
| Intangible assets |
|
|
118,740 |
|
|
|
(148,345 |
) |
| Deferred rent |
|
|
7,883 |
|
|
|
9,473 |
|
| Stock-based compensation |
|
|
128,827 |
|
|
|
- |
|
| Contributions carryforward |
|
|
93 |
|
|
|
- |
|
| Total deferred tax assets |
|
|
4,167,140 |
|
|
|
1,943,490 |
|
| |
|
|
|
|
|
|
|
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Property and equipment |
|
|
(630 |
) |
|
|
(805 |
) |
| Total deferred tax liabilities |
|
|
(630 |
) |
|
|
(805 |
) |
| |
|
|
|
|
|
|
|
|
| Deferred tax assets, net |
|
|
4,166,510 |
|
|
|
1,942,685 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Valuation allowance: |
|
|
|
|
|
|
|
|
| Beginning of year |
|
|
(1,942,685 |
) |
|
|
(1,152,977 |
) |
| (Increase) decrease during year |
|
|
(2,223,825 |
) |
|
|
(789,708 |
) |
| Ending balance |
|
|
(4,166,510 |
) |
|
|
(1,942,685 |
) |
| |
|
|
|
|
|
|
|
|
| Net deferred tax asset |
|
$ |
- |
|
|
$ |
- |
|
|
| Reconciliation of income tax |
A reconciliation of income tax computed at the U.S. statutory
rate to the effective income tax rate is as follows:
| |
|
For the |
|
|
For the |
|
| |
|
Year Ended |
|
|
Year Ended |
|
| |
|
December 31, 2012 |
|
|
December 31, 2011 |
|
| |
|
|
|
|
|
|
|
|
| Statutory U.S. federal income tax rate |
|
|
34.0 |
% |
|
|
34.0 |
% |
| State income taxes, net of federal tax benefit |
|
|
3.1 |
|
|
|
3.1 |
|
| Other |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
| Change in valuation allowance |
|
|
(37.0 |
) |
|
|
(37.0 |
) |
| Effective income tax rate |
|
|
0.0 |
% |
|
|
0.0 |
% |
|