INCOME TAXES

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

15. INCOME TAXES

The components of the provision for income tax benefit are as follows for the years ended:

	December 31, 2011			December 31, 2010
Current taxes
Federal	$	--		$	--
State		--			--
Current taxes		--			--
Change in deferred taxes		(1,180,833	)		(356,291	)
Change in valuation allowance		1,241,295			290,417
Provision for income tax expense (benefit)	$	60,462		$	(65,874	)

The significant differences between the statutory tax rate and the effective tax rates for the Company for the nine months ended are as follows:

	December 31, 2011			December 31, 2010
Statutory tax rate benefit		--	%		--	%
Increase (decrease) in rates resulting from:
Net operating loss carryforward or carryback		(31	)%		(30	)%
Equity based compensation and loss		--	%		1	%
Book/tax depreciation and amortization differences		--	%		--	%
Change in valuation allowance		32	%		23	%
Other		--	%		1	%
Effective tax rate (benefit)		1	%		(5	)%

The following is a summary of the significant components of the Company’s deferred tax assets and liabilities at December 31, 2011:

Deferred tax assets:
Equity based compensation	$	21,743
Allowance for doubtful accounts		10,540
Depreciation and amortization timing differences		(4,389	)
Net operating loss carryforward		1,623,065
On-line training certificate reserve		1,162
Total deferred tax assets		1,652,121
Valuation allowance		(1,603,805	)
Deferred tax assets net of valuation allowance		48,316
Less deferred tax assets – non-current, net of valuation allowance		47,735
Deferred tax assets – current, net of valuation allowance	$	581

The effective tax rate used for calculation of the deferred taxes as of December 31, 2011 was 34%. The Company has established a valuation allowance against deferred tax assets of $1,603,805 due to the uncertainty regarding realization, comprised primarily of a 98% reserve against the deferred tax assets attributable to the equity based compensation, a 100% reserve against the allowance for doubtful accounts, a 97% reserve against the net operating carryforward, and a 25% reserve against depreciation and amortization timing differences.

The following is a summary of the significant components of the Company’s deferred tax assets and liabilities at December 31, 2010:

Deferred tax assets:
Equity based compensation	$	21,743
Allowance for doubtful accounts		5,100
Depreciation and amortization timing differences		(6,199	)
Net operating loss carryforward		449,707
On-line training certificate reserve		938
Total deferred tax assets		471,289
Valuation allowance		(362,511	)
Deferred tax assets net of valuation allowance		108,778
Less deferred tax assets – non-current, net of valuation allowance		108,309
Deferred tax assets – current, net of valuation allowance	$	469

The effective tax rate used for calculation of the deferred taxes as of December 31, 2010 was 34%. The Company has established a valuation allowance against deferred tax assets of $362,511 due to the uncertainty regarding realization, comprised primarily of a 98% reserve against the deferred tax assets attributable to the equity based compensation, a 100% reserve against the allowance for doubtful accounts, a 75% reserve against the net operating carryforward, and a 25% reserve against depreciation and amortization timing differences.