XML 73 R20.htm IDEA: XBRL DOCUMENT
v2.4.0.6

13. INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Tax Disclosure [Abstract] |
INCOME TAXES | There was no Federal income tax expense for the years ended December 31, 2012 and 2011 due to the Company’s net losses. Income tax expense represents minimum state taxes due. During 2011, in addition to the $1,600 minimum taxes disclosed below, the Company had to repay previous years’ erroneous State refunds relating to fiscal years 2008 and 2009, along with some local taxes resulting in a total income tax expense of $13,160. The blended Federal and State tax rate of 39.83% applies to loss before taxes. The Company’s tax expense differs from the “expected” tax expense for Federal income tax purposes, (computed by applying the United States Federal tax rate of 34% to loss before taxes), as follows:
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |
Computed “expected” tax expense (benefit) |  | $ | (843,193 | ) |  | $ | (866,148 | )
State taxes, net of federal benefit |  |  | (180,827 | ) |  |  | (203,167 | )
Goodwill impairment and other non-deductible items |  |  | (155,420 | ) |  |  | (219,135 | )
Change in deferred tax asset valuation allowance |  |  | 1,181,188 |  |  |  | 1,290,050 |
|  | $ | 1,748 |  |  | $ | 1,600 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at December 31 are as follows:
|  | 2012 |  |  | 2011 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accrued vacation |  | $ | 12,430 |  |  | $ | 54,360 |
Accrued salaries |  |  | 27,386 |  |  |  | 143,030 |
Charitable contributions |  |  | 2,731 |  |  |  | 2,333 |
Reserve for bad debt |  |  | 18,684 |  |  |  | 29,288 |
Stock options |  |  | 4,237,988 |  |  |  | 3,932,565 |
Other |  |  | 3,751 |  |  |  | – |
Net operating loss carryforward |  |  | 5,193,118 |  |  |  | 4,162,918 |
Total gross deferred tax assets |  |  | 9,496,088 |  |  |  | 8,324,494 |
Less: Deferred tax asset valuation allowance |  |  | (9,480,641 | ) |  |  | (8,299,453 | )
Total net deferred tax assets |  |  | 15,447 |  |  |  | 25,041 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | (15,447 | ) |  |  | (25,041 | )
Total deferred tax liabilities |  |  | (15,447 | ) |  |  | (25,041 | )
Total net deferred taxes |  | $ | – |  |  | $ | – |
The valuation allowance at December 31, 2012 was $9,480,641. The increase in the valuation allowance during 2012 was $1,181,188. At December 31, 2012, the Company has a net operating loss carry forward of $13,036,768 available to offset future net income through 2032. The NOL expires during the years 2014 to 2032. The utilization of the net operating loss carryforwards is dependent upon the ability of the Company to generate sufficient taxable income during the carryforward period. In the event that a significant change in ownership of the Company occurs as a result of the Company’s issuance of common stock, the utilization of the NOL carry forward will be subject to limitation under certain provisions of the Internal Revenue Code. Management does not presently believe that such a change has occurred.

X
- 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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: 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=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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=6907707&loc=d3e32537-109319 Reference 7: 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=6907707&loc=d3e32639-109319 Reference 8: 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=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration