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13. INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income tax reconciliation | 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, |
|  | 2013 |  |  | 2012 |
Computed “expected” tax expense (benefit) |  | $ | (949,929 | ) |  | $ | (843,193 | )
State taxes, net of federal benefit |  |  | (173,132 | ) |  |  | (180,827 | )
Goodwill impairment and other non-deductible items |  |  | 76,599 |  |  |  | (155,420 | )
Change in deferred tax asset valuation allowance |  |  | 1,048,062 |  |  |  | 1,181,188 |
Income tax expense |  | $ | 1,600 |  |  | $ | 1,748 |
Deferred tax assets and liabilities | 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:
|  | 2013 |  |  | 2012 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accrued vacation |  | $ | – |  |  | $ | 12,430 |
Accrued salaries |  |  | – |  |  |  | 27,386 |
Charitable contributions |  |  | 4,128 |  |  |  | 2,731 |
Reserve for bad debt |  |  | 30,006 |  |  |  | 18,684 |
Stock options |  |  | 4,411,279 |  |  |  | 4,237,988 |
Inventory Adjustment |  |  | 3,326 |  |  |  | – |
Other |  |  | 7,502 |  |  |  | 3,751 |
Net operating loss carryforward |  |  | 6,183,779 |  |  |  | 5,193,118 |
Total gross deferred tax assets |  |  | 10,640,020 |  |  |  | 9,496,088 |
Less: Deferred tax asset valuation allowance |  |  | (10,528,703 | ) |  |  | (9,480,641 | )
Total net deferred tax assets |  |  | 111,317 |  |  |  | 15,447 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | (111,317 | ) |  |  | (15,447 | )
Total deferred tax liabilities |  |  | (111,317 | ) |  |  | (15,447 | )
Total net deferred taxes |  | $ | – |  |  | $ | – |

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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: 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 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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