Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.1.9
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Effective tax rate and statutory federal rate

 The following table presents the current and deferred provision (benefit) for income taxes for the years ended December 31, 2014:

 

    2014     2013  
Current:            
Federal $  -     $ -  
State   -       -  
Foreign    -       -  
  $  -     $ -  
Deferred:              
Federal $    (3,942,754 )   $ -  
State     (824,804 )     -  
Foreign     (184,751 )     -  
      (4,952,309 )     -  
  $    (4,952,309 )   $ -  

 
Effective tax rate and statutory federal rates

The table below summarizes the differences between the Company’s effective tax rate and the statutory federal rate for the years ended December 31, 2014 and 2013.

 

   

December 31,

2014

    

December 31,

2013

  
Tax benefit computed at "expected" statutory rate    $ (2,742,728 )   $ (1,173,114 )
State income taxes, net of benefit     (48,135 )     (79,110 ) 
Permanent differences                
    Deemed Dividend     432,307       -  
    Stock based compensation and consulting     581,216       381,620  
    Other permanent differences     2,535       (50,892 )
Timing differences                
   Amortization of patents and other     -          304,435  
Change in valuation allowance      (3,177,504 )     617,061  
Net income tax benefit    $ 4,952,309     $ -  
Deferred tax asset

The table below summarizes the differences between the Companies’ effective tax rate and the statutory federal rate as follows for the years ended December 31, 2014 and 2013:

 

    December 31, 2014     December 31, 2013  
             
Computed "expected" tax expense (benefit)     (34.00 )%     (34.00 )%
State income taxes     (0.60 )%     (5.0 )%
Permanent differences     12.60 %     14.0 %
Timing differences     - %     13.0 % 
Change in valuation allowance     (39.39 )%     12.0 %
                 
Effective tax rate     (61.39 )%     0.0 %

 

The Company has a deferred tax asset, which is summarized as follows at:

 

Deferred tax assets:   December 31, 2014     December 31, 2013  
Total deferred tax assets   $ 4,952,309     $ 1,095,797  
Less: valuation allowance     -       (1.095,797 )
Net deferred tax asset   $ 4,952,309     $ -