Annual report pursuant to section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.0.8
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2013
INCOME TAXES [Abstract]  
Schedule of Deferred Tax Assets

The significant components of the Company's deferred tax account balances are as follows:


                 

 

 

Year ended

December 31,

 

 

 

2013

 

 

2012

 

Deferred tax assets:

 

 

 

 

 

 

Net operating losses

 

$

1,698,286

 

 

$

777,970

 

Allowance for bad debts

 

 

2,066

 

 

 

-

 

Stock options

 

 

6,167

 

 

 

-

 

Capital loss carryover

 

 

-

 

 

 

10,496

 

Common Stock for Services

 

 

-

 

 

 

10,000

 

Deferred revenue

 

 

-

 

 

 

38,445

 

Valuation allowance

 

 

(1,691,298

)

 

 

(835,637

)

Net deferred tax assets

 

$

15,221

 

 

$

1,274

 

 

 

 

 

 

 

 

 

 

Total deferred tax liabilities

 

 

(15,221

)

 

 

(1,274

)

Total net deferred taxes

 

$

-

 

 

$

-

 


Schedule of Effective Income Tax Rate Reconciliation

Reconciliation of the differences between income tax benefit computed at the federal statutory tax rate of 34% and 15% for 2013 and 2012, respectively and the provision for income tax benefit for the years ended December 31, 2013 and 2012 is as follows:


                 

 

 

Year ended

December 31,

 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

Income tax (loss) at federal statutory rate

 

 

(34.00

)%

 

 

(15.00

)%

State taxes, net of federal benefit

 

 

(3.63

)%

 

 

(4.08

)%

Nondeductible items

 

 

(93.37

)%

 

 

12.90

%

Changes in valuation allowance

 

 

131.00

%

 

 

6.18

%

 

 

 

0.00

%

 

 

0.00

%