|
Income Taxes (Tables)
|
12 Months Ended |
|
Dec. 31, 2014
|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income before Income Tax, Domestic and Foreign |
The breakout of the loss from continuing operations
before income taxes between domestic and foreign operations is below:
| |
|
2014 |
|
|
2013 |
|
| Loss from continuing operations before income taxes |
|
|
|
|
|
|
|
|
| United States |
|
$ |
5,442,499 |
|
|
$ |
4,650,443 |
|
| Foreign |
|
|
759,875 |
|
|
|
636,651 |
|
| |
|
$ |
6,202,374 |
|
|
$ |
5,287,094 |
|
|
| Schedule of Components of Income Tax Expense (Benefit) |
The Income Tax (benefit) provision consists
of the following:
| Foreign |
|
|
|
|
|
|
|
|
| Current |
|
$ |
55,486 |
|
|
$ |
40,935 |
|
| Deferred |
|
|
(267,960 |
) |
|
|
(167,554 |
) |
| U.S. Federal |
|
|
|
|
|
|
|
|
| Current |
|
|
318 |
|
|
|
- |
|
| Deferred |
|
|
(1,266,980 |
) |
|
|
(652,624 |
) |
| State & Local |
|
|
|
|
|
|
|
|
| Current |
|
|
- |
|
|
|
- |
|
| Deferred |
|
|
(149,056 |
) |
|
|
(76,786 |
) |
| Change in Valuation Allowance |
|
|
1,151,691 |
|
|
|
896,964 |
|
| |
|
$ |
(476,501 |
) |
|
$ |
40,935 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The (benefit) provision for income tax using
statutory U.S. federal tax rate is reconciled to the companys effective tax rate as follows:
| |
|
2014 |
|
|
2013 |
|
| Computed expected income tax benefit |
|
$ |
(2,093,584 |
) |
|
$ |
(1,797,612 |
) |
| State income taxes, net of federal benefit |
|
|
(205,177 |
) |
|
|
(211,484 |
) |
| Foreign rate differential |
|
|
45,883 |
|
|
|
(79,399 |
) |
| Prior year deferred tax adjustment |
|
|
- |
|
|
|
1,083,075 |
|
| Prior year true-ups other deferred tax balances |
|
|
106,236 |
|
|
|
- |
|
| Travel, entertainment, and other |
|
|
91,045 |
|
|
|
537,988 |
|
| Deferred taxes from acquisitions |
|
|
- |
|
|
|
(388,597 |
) |
| Fixed asset DTL true-up |
|
|
305,796 |
|
|
|
- |
|
| Other |
|
|
121,609 |
|
|
|
- |
|
| Change in valuation allowance |
|
|
1,151,691 |
|
|
|
896,964 |
|
| Effective Rate |
|
$ |
(476,501 |
) |
|
$ |
40,935 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
Deferred income taxes reflect the net tax effect
of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for
tax purposes. Major components of deferred tax assets at December 31, 2014 and 2013 were:
| |
|
2014 |
|
|
2013 |
|
| Net operating loss carryovers |
|
$ |
6,773,713 |
|
|
$ |
4,495,059 |
|
| Capital loss carryforwards |
|
|
488,500 |
|
|
|
488,500 |
|
| Investments |
|
|
(84,384 |
) |
|
|
- |
|
| Derivative liability |
|
|
372,931 |
|
|
|
645,500 |
|
| Warrants |
|
|
- |
|
|
|
184,800 |
|
| Australian equity investment |
|
|
(26,417 |
) |
|
|
53,132 |
|
| Deferred occupancy liabilities |
|
|
388,114 |
|
|
|
378,521 |
|
| Total deferred Tax Assets |
|
|
7,912,457 |
|
|
|
6,245,512 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment |
|
|
(469,986 |
) |
|
|
(278,868 |
) |
| Convertible debt |
|
|
(372,931 |
) |
|
|
(645,500 |
) |
| Intangibles |
|
|
(957,229 |
) |
|
|
(1,061,844 |
) |
| Goodwill |
|
|
(47,492 |
) |
|
|
- |
|
| Total deferred tax liabilities |
|
|
(1,847,638 |
) |
|
|
(1,986,212 |
) |
| |
|
|
|
|
|
|
|
|
| Net deferred tax assets |
|
|
6,064,819 |
|
|
|
4,259,300 |
|
| Valuation Allowance |
|
|
(6,751,703 |
) |
|
|
(5,600,012 |
) |
| |
|
$ |
(686,884 |
) |
|
$ |
(1,340,712 |
) |
|
| Schedule of Uncertain Tax Positions |
The companys uncertain tax positions
for December 31, 2014 and 2013 are as follows:
| |
|
Unrecognized |
|
|
Interest and |
|
|
|
|
| |
|
Tax Benefit |
|
|
Penalties |
|
|
Total |
|
| Balance at December 31, 2013 |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Increases related to prior year tax positions |
|
|
419,301 |
|
|
|
- |
|
|
|
419,301 |
|
| Decreases related to prior year tax positions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Increases related to current year tax positions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Settlements during the period |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Lapse of statute of limitations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Balance at December 31, 2014 |
|
$ |
419,301 |
|
|
$ |
- |
|
|
$ |
419,301 |
|
|