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General form of registration statement for all companies including face-amount certificate companies

13. Income Taxes (Tables)

v2.4.0.6
13. Income Taxes (Tables)
12 Months Ended
Dec. 31, 2012
Income Taxes Tables  
Components of income tax expense (benefit)

The components of income tax expense (benefit) are as follows:

 

    For the     For the  
    Year Ended     Year Ended  
    December 31, 2012     December 31, 2011  
Current:            
Federal   $ -     $ -  
State     -       -  
      -       -  
Deferred:                
Federal     -       -  
State     -       -  
      -       -  
Total Income tax expense (benefit)   $ -     $ -  
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 %