XML 34 R15.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The provision for income taxes consists of the following:
| 2016 |  | 2015
Current tax provision | $ | 5,180 |  |  | $ | 4,081 |
Deferred tax benefit | (34,440 | ) |  | (304,224 | )
Total tax benefit | $ | (29,260 | ) |  | $ | (300,143 | )
A reconciliation of the expected Federal statutory rate to our actual rate as reported for each of the periods presented is as follows:
| 2016 |  | 2015
Federal statutory rate | 34 | % |  | 34 | %
State income tax rate, net of federal benefit | (1 | %) |  | — | %
Permanent differences | (2 | %) |  | 1 | %
Temporary differences | (5 | %) |  | 4 | %
New Jersey tax settlement and other | — | % |  | 11 | %
Change in valuation allowance | (22 | %) |  | (65 | %)
| 4 | % |  | (15 | %)
Deferred Income Taxes Deferred income taxes are the result of temporary differences between book and tax basis of certain assets and liabilities, timing of income and expense recognition of certain items and net operating loss carry-forwards. We assess temporary differences resulting from different treatments of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are recorded in the consolidated balance sheets. We evaluate the realizability of our deferred tax assets on a regular basis, an exercise that requires significant judgment. In the course of this evaluation we considered our recent history of tax losses, the economic conditions in which we operate, recent organizational changes and our forecasts and projections. We believe it is more likely than not that essentially none of our deferred tax assets will be realized, and we have recorded a valuation allowance for the net deferred tax assets that may not be realized as of December 31, 2016 and 2015. The following is a schedule of the deferred tax assets and liabilities as of December 31, 2016 and 2015:
| 2016 |  | 2015
Deferred tax assets: |  |  |
Net operating loss carry forward | $ | 27,202,348 |  |  | $ | 34,164,267 |
Intangible assets | 2,239,700 |  |  | 3,909,300 |
Stock based expenses | 1,484,900 |  |  | 1,201,800 |
Accrued expense | 311,000 |  |  | 552,500 |
Deferred rent | 69,300 |  |  | 2,200 |
Other | 14,200 |  |  | 15,000 |
Allowance for doubtful accounts | 9,800 |  |  | 6,900 |
Subtotal | 31,331,248 |  |  | 39,851,967 |
Less valuation allowance | (31,331,248 | ) |  | (39,838,347 | )
Total | — |  |  | 13,620 |
Deferred tax liabilities: |  |  |  |  |
Intangibles and Property and Equipment | 3,702,300 |  |  | 3,435,700 |
Other | 36,200 |  |  | 363,900 |
Total | 3,738,500 |  |  | 3,799,600 |
Total deferred tax assets (liabilities) | $ | (3,738,500 | ) |  | $ | (3,785,980 | )
The net operating losses amounted to approximately $78,678,000 and expire beginning 2021 through 2036. Pursuant to Internal Revenue Service Code Section 382, the use of certain of the Company’s net operating loss carry forwards are limited due to a cumulative change in ownership. We are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2013 through 2015. Our state income tax returns are open to audit under the statute of limitations for the same periods. We recognize interest and penalties related to income taxes in income tax expense. We have incurred no penalties and interest for the years ended December 31, 2016 and 2015.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration