Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income tax provision (benefit) is as follows for the years ended:

	DECEMBER 31,
	2017		2016

Current provision (benefit)
State	$	10,000	$	(63,457)
Foreign		29,586		7,948
Total		39,586		(55,509)

Deferred provision (benefit)
Foreign		(1,619)		(17,937)
Total		(1,619)		(17,937)

Income tax provision (benefit)	$	37,967	$	(73,446)

Income tax provision (benefit) effective rates, which differs from the federal and state statutory rate as follows for the years ended:

	DECEMBER 31,
	2017	2016

Statutory federal income tax rate	34.0%	34.0%
State, net of federal benefit	-0.3%	-0.1%
Non-Deductible Expenses	-5.4%	-0.4%
Change in valuation allowance	6.9%	-28.9%
Foreign Rate Differential	0.9%	-2.8%
Return to accrual difference true-ups	-0.6%	-0.4%
Other	3.8%	0.5%
Deferred True-Up	69.2%	0.0%
Change in federal statutory rate	-109.5%	0.0%
Combined effective tax rate	-1.0%	1.9%

the Company’s deferred tax assets (liabilities) consisted of the following:

	DECEMBER 31,
	2017		2016
Deferred tax assets:
Net operating loss carryforwards	$	10,526,231	$	10,875,880
Alternative minimum tax credit		45,650		45,650
Share-based compensation		358,360		369,231
Intangible amortization		740,685		1,106,767
Foreign depreciation		-		16,244
Depreciation		-		-
Other assets		233,447		278,247

Total deferred tax assets		11,904,373		12,692,019
Less: valuation allowance		(9,550,279)		(9,791,680)
Total deferred tax assets, net		2,354,094		2,900,339

Deferred tax liabilities:
Goodwill amortization		2,203,154		2,738,256
Depreciation		86,506		52,974
Foreign intangible amortization		447,811		447,811
Other liabilities		8,852		25,968
Foreign capitalized software costs		-		34,315

Total deferred tax liabilities		2,746,323		3,299,324

Net deferred tax liability	$	(392,229)	$	(398,985)

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