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Note 12. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

		2014				2013
Current:
Federal		$	631,129			$	590,000
State			97,186				103,000
Foreign			(9,278	)			73,000
Total Current			719,037				766,000
Deferred:
Federal			(776,467	)			(213,000	)
State			(130,535	)			24,000
Foreign			(91,510	)			(21,000	)
Total Deferred			(998,512	)			(210,000	)
Total provision for income taxes		$	(279,475	)		$	556,000

Schedule of Effective Income Tax Rate Reconciliation

		2014				2013
Federal statutory tax rate			(34.0)	%			34.0	%
State tax rate			(5.3)	%			4.2	%
Permanent difference  - transaction costs			4.9	%			10.1	%
Permanent difference – other			8.0	%			0.9	%
Permanent items – disallowed interest			26.2	%			2.0	%
Provision to return			(4.3)	%			(2.0)	%
Foreign rate differential			(26.6)	%			(2.3)	%
UK rate change			(9.8)	%			0.0	%
			(40.9	)%			46.9	%
Change in valuation allowance			(76.9)	%			0.0	%
Total			(117.8)	%			46.9	%

Schedule of Deferred Tax Assets and Liabilities

		2014				2013				Change
Assets:
Net operating loss		$	561,358			$	766,000			$	(206,462	)
Deferred revenue			35,347				10,000				25,347
Allowance for doubtful accounts			145,335				140,000				5,335
Stock options			211,824				154,000				57,824
Basis difference in intangible assets			190,295				137,000				53,295
Prepaid D&O Insurance			13,996				-				13,996
Accrued accounting fees			-				16,000				(16,000	)
Rent expense			-				26,000				(26,000	)
Foreign tax credits carryforward			1,180,833				1,181,000				(167	)
Other			759				1,000				(241	)
Total deferred tax asset			2,339,747				2,431,000				(91,253	)
Less:  Valuation allowance			(1,763,415	)			(1,946,000	)			182,585
Total net deferred tax asset			576,332				485,000				91,332
Liabilities
Prepaid expenses			(32,176	)			(16,000	)			(16,176	)
Basis difference in fixed assets			(19,222	)			(100,000	)			80,778
Debt discount - convertible note payable			(200,559	)			(761,000	)			560,441
Purchase of intangibles			(950,863	)			(1,233,000	)			282,137
Total deferred tax liability			(1,202,820	)			(2,110,000	)			907,180
Total net deferred tax asset / (liability)		$	(626,488	)		$	(1,625,000	)		$	998,512

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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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.

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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.

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