Annual report pursuant to Section 13 and 15(d)

M. INCOME TAXES (Tables)

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M. INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Schedule of statutory federal tax rate

A reconciliation of tax expense computed at the statutory federal tax rate on income (loss) from operations before income taxes to the actual income tax (benefit) / expense is as follows:

 

    2013     2012  
Tax provision (benefit) computed at the statutory rate   $ (1,239,269 )   $ 121,995  
State taxes     5,849       9,330  
Book expenses not deductible for tax purposes     19,572       12,968  
Other     526       990  
      (1,213,321 )     145,283  
Change in valuation allowance for deferred tax assets     1,563,145       (176,554 )
Income tax (benefit) provision   $ 349,823     $ (31,271 )
Schedule of deferred tax asset and liability

Significant components of the Company's deferred tax assets are as follows:

 

    2013     2012  
Deferred Tax Assets:                
Net operating loss carryforwards   $ 31,686,463     $ 33,384,938  
Intangibles     1,277,631       259,953  
Credits     –       –  
Other     872,796       1,207,240  
Total deferred tax assets     33,836,890       34,852,131  
                 
Deferred Tax Liabilities:                
Intangibles     (335,275 )      –  
Other     –       –  
Total deferred tax liabilities     (335,275 )      –  
Valuation allowance     (33,836,890 )     (34,852,131 )
Net deferred tax liabilities   $ (335,275 )   $ –