XML 29 R15.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 9 - INCOME TAXES Following is a summary of the components giving rise to the income tax provision (benefit) for the years ended December 31:
|  | 2015 |  |  | 2014 |
Currently payable: |  |  |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |
State |  |  | 5,836 |  |  |  | 6,735 |
Total currently payable |  |  | 5,836 |  |  |  | 6,735 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (990,745 | ) |  |  | (13,939,671 | )
State |  |  | (147,674 | ) |  |  | 488,406 |
Total deferred |  |  | (1,138,419 | ) |  |  | (13,451,265 | )
Less: increase in allowance |  |  | 1,154,767 |  |  |  | 12,455,900 |
Net deferred |  |  | 16,348 |  |  |  | (995,365 | )
Total income tax provision (benefit) |  | $ | 22,184 |  |  | $ | (988,630 | )
Individual components of deferred taxes are as follows: |  |  |  |  |  |  |  |
Deferred tax assets: |  |  | 2015 |  |  |  | 2014 |
Net operating loss carry forwards |  | $ | 17,383,770 |  |  | $ | 16,104,083 |
Equity issued for services |  |  | 855,139 |  |  |  | 1,050,348 |
Goodwill and other intangibles |  |  | 692,470 |  |  |  | 773,019 |
Investment in pass-through entity |  |  | 268,476 |  |  |  | 268,476 |
Other |  |  | 681,889 |  |  |  | 591,259 |
Gross deferred tax assets |  |  | 19,881,744 |  |  |  | 18,787,185 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Goodwill and other intangibles |  |  | 291,706 |  |  |  | 312,277 |
Depreciation and amortization |  |  | 289,534 |  |  |  | 312,823 |
Gross deferred tax liabilities |  |  | 581,240 |  |  |  | 625,100 |
Less valuation allowance |  |  | (19,462,611 | ) |  |  | (18,307,844 | )
Net deferred tax liabilities |  | $ | (162,107 | ) |  | $ | (145,759 | )
During 2014, the Company recognized a $995,000 net deferred tax benefit primarily as a result of the expense recognized during the period related to the impairment of the investment in VATI and the Bascom patents. The Company has approximately $51,958,000 in federal net operating loss carryforwards (“NOLs”) available to reduce future taxable income, which will expire at various dates from 2022 through 2034. Due to the uncertainty as to the Company’s ability to generate sufficient taxable income in the future and utilize the NOLs before they expire, the Company has recorded a valuation allowance accordingly. The Company’s NOLs could also be subject to annual limitation as a result of a change in its equity ownership as defined under the Internal Revenue Code Section 382. This limitation, as applicable, could further limit the use of the NOLs. The excess tax benefits associated with stock option exercises are recorded directly to stockholders’ equity only when realized. As a result, the excess tax benefits available in net operating loss carryforwards but not reflected in deferred tax assets was approximately $1,019,000. These carryforwards expire at various dates from 2022 through 2030. The excess tax benefits associated with stock option exercises are recorded directly to stockholders’ equity only when realized. The differences between the United States statutory federal income tax rate and the effective income tax rate in the accompanying consolidated statements of operations are as follows:
|  | 2015 |  |  | 2014 |
Statutory United States federal rate |  |  | 34.0 | % |  |  | 34.0 | %
State income taxes net of federal benefit |  |  | 0.7 |  |  |  | (0.7 | )
Noncontrolling interest in pass-through entity |  |  | - |  |  |  | (3.4 | )
Permanent differences |  |  | (23.3 | ) |  |  | (2.3 | )
Other |  |  | (3.5 | ) |  |  | 1.1 |
Change in valuation reserves |  |  | (8.1 | ) |  |  | (26.6 | )
Effective tax rate |  |  | (0.2 | )% |  |  | 2.1 | %
At December 31, 2015 and 2014, the total unrecognized tax benefits of $446,000 have been netted against the related deferred tax assets. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2015 and 2014, the Company recognized no interest and penalties. The Company files income tax returns in the U.S. federal jurisdiction and various states. The tax years 2012-2015 generally remain open to examination by major taxing jurisdictions to which the Company is subject.

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=6907707&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=6907707&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=6907707&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=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration