XML 70 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Taxes [Abstract] |
Income Taxes | 11. Income Taxes The Company’s benefit for income taxes consists of the following for the year ended December 31, 2012 and 2011:
|  | 2012 |  |  | 2011 |
Deferred: |  |  |  |  |  |
Federal |  | $ | (535,089 | ) |  | $ | (563,837 | )
State and local |  |  | (406,952 | ) |  |  | (144,204 | )
Total deferred |  |  | (942,041 | ) |  |  | (708,041 | )
Total benefit for income taxes |  |  | (942,041 | ) |  |  | (708,041 | )
Less: valuation reserve |  |  | 942,041 |  |  |  | 708,041 |
Income Tax provision |  | $ | - |  |  | $ | - |
A reconciliation of the federal statutory rate of 0% for the year ended December 31, 2012 and 2011 to the effective rate for income from operations before income taxes is as follows:
|  | 2012 |  |  | 2011 |
Benefit for income taxes at federal statutory rate |  |  | 34.0 | % |  |  | 34.0 | %
State and local income taxes, net of federal benefit |  |  | 10.6 |  |  |  | 5.3 |
Differences attributable to change in state business apportionment |  |  | 7.0 |  |  |  |  |
Other |  |  | 1.7 |  |  |  | (2.2 | )
Less valuation allowance |  |  | (53.3 | ) |  |  | (37.1 | )
Effective income tax rate |  |  | 0.0 | % |  |  | 0.0 | %
The Company adjusted its estimate of business apportionment, thus increasing its effective state tax rate from 5.3% to 10.6%. The increase is primarily due to allocation of business receipts to New York State and New York City. The temporary differences between recognition of expenses on the consolidated financial statements and tax return relate primarily to differences in depreciation methods and change in allowance for doubtful accounts. The tax effects of these temporary differences along with the net operating losses, net of an allowance for credits, have been recognized as deferred tax assets at December 31, 2012 and 2011 as follows:
|  | 2012 |  |  | 2011 |
Net operating loss carryforward |  | $ | 1,443,296 |  |  | $ | 799,408 |
Bad debt reserve |  |  | 75,163 |  |  |  | 17,289 |
Employee stock compensation |  |  | 334,393 |  |  |  | 94,688 |
Depreciation |  |  | (370 | ) |  |  | (944 | )
Total before valuation reserve |  |  | 1,852,482 |  |  |  | 910,441 |
Less valuation reserve |  |  | (1,852,482 | ) |  |  | (910,441 | )
Net deferred tax asset |  | $ | - |  |  | $ | - |
The Company establishes a valuation allowance, if based on the weight of available evidence, it is more likely than not that some portion or all of the deferred assets will not be realized. The valuation allowance increased $942,041 and $708,041 during 2012 and 2011, respectively, offsetting the increase in the deferred tax asset attributable to the net operating loss and reserves. As of December 31, 2012, the Company has a net operating loss carry forward of approximately $3,200,000 for Federal tax purposes. The net operating loss expires through 2032. The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expenses. As of December 31, 2012, the Company has no unrecognized tax positions, including interest and penalties. The tax years 2008-2011 are still open to examination by the major tax jurisdictions in which the Company operates. The Company files returns in the United States Federal tax jurisdiction and various other state jurisdictions.

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