Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.5.0.2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provision (Benefit)

The income tax provision (benefit) for the years ended December 31, 2015 and 2014 consists of the following:

 

    For The Years Ended  
    December 31,  
    2015     2014  
Federal:                
Current   $ -     $ -  
Deferred     (3,704,115 )     (10,070,600 )
                 
State and local:                
Current     -       -  
Deferred     1,496,815       (2,073,400 )
      (2,207,300 )     (12,144,000 )
Change in valuation allowance     2,207,300       12,144,000  
Income tax provision (benefit)   $ -     $ -  

Summary of Reconciliation of Statutory Federal Income Tax Rate and Effective Income Tax Rate

A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:

 

    For The Years Ended  
    December 31,  
    2015     2014  
             
Tax benefit at federal statutory rate     (34.0) %     (34.0) %
State income taxes, net of federal benefit     (4.0) %     (7.0) %
Permanent differences     (11.1) %     (3.3) %
Other adjustment     (1.1) %     (8.0) %
Change in effective rate     23.4 %     0.0 %
Change in valuation allowance     26.8 %     52.3 %
Effective income tax rate     0.0 %     0.0 %
Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred tax assets are presented below:

 

    For The Years Ended  
    December 31,  
    2015     2014  
Deferred Tax Assets:                
Net operating loss carryforwards   $ 20,237,500     $ 17,499,000  
Stock-based compensation     4,624,700       3,625,500  
Provision for warrant liability     -       606,800  
Accruals     1,581,900       2,397,300  
Goodwill     2,318,500       2,501,500  
Intangible assets     474,000       553,100  
Allowance for doubtful accounts     53,600       -  
Tax credits     448,300       409,000  
Gross deferred tax assets     29,738,500       27,592,200  
                 
Deferred Tax Liabilities:                
Fixed assets     (772,300 )     (833,300 )
Gross deferred tax liabilities     (772,300 )     (833,300 )
                 
Net deferred tax assets     28,966,200       26,758,900  
                 
Valuation allowance     (28,966,200 )     (26,758,900 )
                 
Deferred tax asset, net of valuation allowance   $ -     $ -  
                 
Changes in valuation allowance   $ 2,207,300     $ 12,144,000