Annual report pursuant to section 13 and 15(d)

15. Income Taxes (Tables)

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15. Income Taxes (Tables)
12 Months Ended
Dec. 31, 2013
Income Taxes Tables  
Schedule of provision for income taxes

 

    2013     2012  
Deferred            
   Federal   $ (1,843,000 )   $ (1,148,000 )
   State     -       -  
      (1,843,000 )     (1,148,000 )
                 
Current                
  Federal     -       -  
  State     51,887          
      51,887       -  
                 
Change in valuation allowance     1,843,000       1,148,000  
                 
Tax Provision   $ 51,887     $ -  
Schedule of Federal statutory tax rate
    2013     2012  
    %     %  
Federal statutory rate     (34.0 )     (34.0 )
State net of federal tax     (2.9 )     (3.9 )
Other     1.6       15.9  
Change in valuation allowance     36.3       22.0  
      1.0       -  
Schedule of deferred tax assets and liability
    2013     2012  
Deferred income tax assets:            
Net operating losses   $ 44,365,000     $ 44,144,000  
Allowance for doubtful accounts     52,000       102,000  
Derivative liability     1,728,000       405,000  
Accrued liabilities and other     999,000       398,000  
Intangible Assets     504,000       -  
Property and equipment     337,000       120,000  
      47,985,000       45,169,000  
                 
Deferred Income tax Liabilities:                
Debt discount     1,664,000       690,000  
      1,664,000       690,000  
Deferred tax asset, net     46,321,000       44,479,000  
                 
Less: Valuation Allowance     (46,321,000 )     (44,479,000 )
                 
Net Deferred Tax Assets   $ -     $ -