丝瓜视频. Post-effective amendment to a registration statement that is not immediately effective upon filing

Post-effective amendment to a registration statement that is not immediately effective upon filing

Income Taxes

Income Taxes

4 Months Ended

Apr. 30, 2013

Notes To Financial Statements [Abstract]

13. Income Taxes

Note 13. Income Taxes

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

For the

Four Months

For the

Ended

Year Ended

April 30,

December 31,

2013

2012

2011

Current:

Federal

State

Deferred:

Federal

State

Total Income tax expense (benefit)

Significant components of the Company's deferred income tax assets and liabilities are as follows:


	April 30,			December 31,
	2013			2012			2011
Deferred tax assets:
Net operating loss	$	4,256,530		$	3,649,651		$	2,064,725
Allowance for doubtful accounts		23,948			261,946			17,637
Intangible assets		238,259			118,740			-
Deferred rent		11,809			7,883			9,473
Stock-based compensation		185,916			128,827			-
Contributions carryforward		93			93			-
Total deferred tax assets		4,716,555			4,167,140			2,091,835

Deferred tax liabilities:
Intangible assets		-			-			(148,345	)
Property and equipment		(31,714	)		(630	)		(805	)
Total deferred tax liabilities		(31,714	)		(630	)		(149,150	)

Deferred tax assets, net		4,684,841			4,166,510			1,942,685


Valuation allowance:
Beginning of year		(4,166,510	)		(1,942,685	)		(1,152,977	)
(Increase) during period		(518,331	)		(2,223,825	)		(789,708	)
Ending balance		(4,684,841	)		(4,166,510	)		(1,942,685	)

Net deferred tax asset	$	-		$	-		$	-

Presentation in the financial statements:

For the

Four Months

Ended

For the

Year Ended

April 30,

December 31,

2013

2012

2011

Deferred taxes, current portion

Deferred taxes, net of current portion

Net deferred tax assets

A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. The Company recorded a valuation allowance in 2013, 2012 and 2011 due to the uncertainty of realization. Management believes that based upon its projection of future taxable operating income for the foreseeable future, it is more likely than not that the Company will not be able to realize the tax benefit associated with deferred tax assets. The net change in the valuation allowance during the four months ended April 30, 2013 and the years ended December 31, 2012 and 2011 was an increase of $518,331, $2,223,825 and $789,708, respectively.

At April 30, 2013, the Company had $11,486,812 of net operating loss carryforwards which will expire from 2029 to 2033. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for unrecognized tax benefits. As of April 30, 2013, tax years 2004 and 2008 through 2012 remain open for IRS audit. The Company has received no notice of audit from the Internal Revenue Service for any of the open tax years.

A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows:


	For the Four Months Ended			For the Year Ended
	April 30,			December 31,
	2013			2012			2011
Statutory U.S. federal income tax rate		34.0	%		34.0	%		34.0	%
State income taxes, net of federal tax benefit		3.1			3.1			3.1
Other		(0.1	)		(0.1	)		(0.1	)
Change in valuation allowance		(37.0	)		(37.0	)		(37.0	)
Effective income tax rate		0.0	%		0.0	%		0.0	%

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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