Annual report pursuant to Section 13 and 15(d)

19. Income Taxes (Tables)

v3.6.0.2
19. Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Taxes Tables  
Schedule of provision for income taxes

        2016   2015
Current          
  Federal      $                   -       $    (7,710,000)
  State                   60,000                         -   
                      60,000          (7,710,000)
             
Deferred          
  Federal             (2,632,394)                         -   
  State                       50,000
                (2,632,394)                 50,000
Tax provision (benefit)           (2,572,394)          (7,660,000)

Schedule of Federal statutory tax rate

        2016   2015
        %   %
Federal statutory rate   (34.0)%   (34.0)%
State net of federal tax   (3.4)%   (3.6)%
Permanent and other items   1.2%   1.1%
Change in valuation allowance   17.9%   (11.8)%
        (18.3)%   (48.3)%

Schedule of deferred tax assets and liability

        2016   2015
Deferred income tax assets:        
  Net operating losses    $    41,975,000    $    32,569,000
  Allowance for doubtful accounts                 99,000                 77,000
  Derivative liability               294,000               620,000
  Accrued liabilities               910,000            1,037,000
  Other                   83,000                         -   
               43,361,000          34,303,000
             
Deferred income tax liabilities:        
  Intangible assets            9,943,000            3,305,000
  Property and equipment            1,098,000            1,103,000
  Debt discount                         -                  388,000
               11,041,000            4,796,000
Deferred tax asset, net          32,320,000          29,507,000
             
Less: valuation allowance         (32,320,000)        (29,507,000)
             
Net deferred tax assets    $                   -       $                   -