Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income tax benefit is as follows for the years ended:

The benefit for income taxes results in effective rates, which differs from the federal and state statutory rate as follows for the years ended:

	DECEMBER 31,
	2016			2015

Statutory federal income tax rate		34.0	%		34.0	%
State income tax rate (net of federal benefit)		-0.1	%		-0.1	%
Non-deductible expenses		-0.4	%		-0.7	%
Change in valuation allowance		-28.9	%		-40.7	%
Foreign rate differential		-2.8	%		3.6	%
Return to accrual difference true-ups		-0.4	%		2.4	%
Other		0.5	%		2.1	%
Combined effective tax rate		1.9	%		0.6	%

The deferred tax assets (liabilities) consisted of the following:

	DECEMBER 31,
	2016		2015
Deferred tax assets:
Net operating loss carryforwards	$	10,875,880	$	9,441,549
Alternative minimum tax credit		45,650		45,650
Share-based compensation		369,231		304,869
Intangible amortization		1,106,767		1,354,223
Foreign depreciation		16,244		17,763
Depreciation		-		36,763
Other assets		278,247		181,706

Total deferred tax assets		12,692,019		11,382,523
Less: valuation allowance		(9,791,680)		(8,500,622)
Total deferred tax assets, net		2,900,339		2,881,901

Deferred tax liabilities:
Goodwill amortization		2,738,256		2,717,847
Depreciation		52,974		-
Foreign intangible amortization		447,811		447,811
Other liabilities		25,968		16,195
Foreign capitalized software costs		34,315		116,970

Total deferred tax liabilities		3,299,324		3,298,823

Net deferred tax liability	$	(398,985)	$	(416,922)

Changes in the valuation allowance for the years ended were as follows: