Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of loss before income taxes |
Information pertaining to the Company’s loss before income taxes and the applicable provision for income taxes is as follows: | | | | | | | | | | | | December 31, | | | 2016 | | 2015 | Loss before income taxes: | | | | | Domestic loss | | $ | (10,998,240 | ) | | $ | (2,310,565 | ) | Foreign income | | 586,653 |
| | 756,747 |
| Total loss before income taxes: | | (10,411,587 | ) | | (1,553,818 | ) | Provision (benefit) for income taxes: | | |
| | |
| Current: | | |
| | |
| Federal | | $ | (17,626 | ) | | $ | 3,939 |
| State and local | | 1,886 |
| | 16,002 |
| Foreign | | 723,502 |
| | 482,242 |
| | | 707,762 |
| | 502,183 |
| Deferred: | | |
| | |
| Federal | | $ | 154,641 |
| | $ | (167,634 | ) | State and local | | 1,766 |
| | 7,006 |
| Foreign | | (276,962 | ) | | 33,988 |
| | | (120,555 | ) | | (126,640 | ) | Total provision for income taxes: | | $ | 587,207 |
| | $ | 375,543 |
|
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| Schedule of deferred tax assets and liabilities |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: | | | | | | | | | | | | December 31, | | | 2016 | | 2015 | Deferred Tax Assets: | | | | | Allowance for receivables | | $ | 100,414 |
| | $ | 72,539 |
| Deferred revenue | | 3,648,029 |
| | 2,939,462 |
| Share-based compensation | | 2,254,428 |
| | 3,095,723 |
| Accrued expenses and other liabilities | | 418,483 |
| | 307,565 |
| Domestic net operating loss carryforwards | | 30,714,934 |
| | 26,023,318 |
| Foreign net operating loss carryforwards | | 9,761 |
| | 99,544 |
| Tax credit carryforwards | | 574,997 |
| | 574,997 |
| AMT tax credit carryforwards | | 460,607 |
| | 483,285 |
| Capital loss carryforwards | | 78,296 |
| | 77,586 |
| Fixed assets | | 489,105 |
| | 554,154 |
| Intangibles | | 1,435,994 |
| | 1,762,519 |
| Sub-total | | 40,185,048 |
| | 35,990,692 |
| Valuation allowance | | (38,800,877 | ) | | (35,121,608 | ) | Total Deferred Tax Assets | | 1,384,171 |
| | 869,084 |
| Deferred Tax Liabilities: | | | | |
| Deferred state income tax | | (923,553 | ) | | (541,359 | ) | Foreign withholding taxes | | (137,659 | ) | | (128,261 | ) | Total Deferred Tax Liabilities | | (1,061,212 | ) | | (669,620 | ) | Net Deferred Tax Assets | | $ | 322,959 |
| | $ | 199,464 |
|
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| Schedule of effective tax rate reconciliation |
The effective tax rate before income taxes varies from the current statutory federal income tax rate as follows: | | | | | | | | | | | | December 31, | | | 2016 | | 2015 | Tax at Federal statutory rate | | $ | (3,644,056 | ) | | $ | (543,836 | ) | Increase (reduction) in income taxes resulting from: | | |
| | |
| State and local taxes | | 2,172 |
| | 3,195 |
| Non-deductible expenses | | (28,812 | ) | | (31,199 | ) | Net effect of foreign operations | | 232,858 |
| | 235,850 |
| Uncertain tax positions | | 12,440 |
| | 26,814 |
| Change in valuation allowance | | 4,011,710 |
| | 680,780 |
| Other | | 895 |
| | 3,939 |
| | | $ | 587,207 |
| | $ | 375,543 |
|
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| Schedule of unrecognized tax benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: | | | | | | | | | | | | 2016 | | 2015 | Balance at January 1, | | $ | 217,289 |
| | $ | 224,637 |
| Increases to tax positions taken in prior years | | 4,510 |
| | 9,306 |
| Decreases to tax positions taken in prior years | | — |
| | — |
| Increase for tax positions taken during the current year | | — |
| | — |
| Expiration of statutes of limitation | | (3,323 | ) | | — |
| Translation | | (1,015 | ) | | (16,654 | ) | Balance at December 31, | | $ | 217,461 |
| | $ | 217,289 |
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