Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2013
Income Taxes [Abstract]  
Schedule of Net Deferred Tax Assets
The Company has the following net deferred tax assets at December 31, 2013:

Deferred tax assets:
     
Net operating loss
  $ 848,781  
Other deferred tax assets
    617  
Total deferred tax assets
    849,398  
         
Deferred tax liabilities:
       
Goodwill and trade name
    (120,223 )
Developed technology
    (199,840 )
Derivative liability
    (133,959 )
Property and equipment
    (14,544 )
Total deferred tax liabilities
    (468,566 )
         
Net deferred tax asset
  $ 380,832  

Schedule of Benefits for Incom Taxes
The benefit for income taxes for the year ended December 31, 2013 consists of the following:

Federal:
     
Current provision
  $ -  
Deferred benefit
    319,114  
      319,114  
State:
       
Current provision
    -  
Deferred benefit
    61,718  
      61,718  
    $ 380,832  

Reconciliation of Statutory Federal Income Tax Rate
A reconciliation of the statutory federal income tax rate to the Company's effective tax rate is as follows:

Expected federal statutory rate
    34.00 %
State income taxes, net of federal benefit
    6.58 %
Tax exempt interest income
    0.32 %
Meals and entertainment
    -0.38 %
Dividends received deduction
    0.12 %
Deferred
    -20.95 %
Other
    1.26 %
      20.95 %