15.	INCOME TAXES

The components of the provision for income tax expense are as follows for the three months ended:

	June 30, 2013		June 30, 2012
Current taxes
Federal	$	—	$	—
State		—		—
Current taxes		—		—
Change in deferred taxes		(29,725)		(79,717)
Change in valuation allowance		29,269		80,097

Provision for income tax expense	$	(456)	$	380

The components of the provision for income tax expense are as follows for the six months ended:

	June 30, 2013		June 30, 2012
Current taxes
Federal	$	—	$	—
State		—		—
Current taxes		—		—
Change in deferred taxes		(35,292)		(173,415)
Change in valuation allowance		38,619		186,911

Provision for income tax expense	$	3,327	$	13,496

The following is a summary of the significant components of the Company’s deferred tax assets and liabilities at June 30, 2013:

Deferred tax assets:
Equity based compensation	$	181,617
Allowance for doubtful accounts		13,260
Depreciation and amortization timing differences		—
Net operating loss carryforward		1,160,376
On-line training certificate reserve		1,048
Total deferred tax assets		1,356,301
Valuation allowance		(1,349,543)

Deferred tax assets net of valuation allowance		6,758

Less deferred tax assets – non-current, net of valuation allowance		6,496

Deferred tax assets – current, net of valuation allowance	$	262

The effective tax rate used for calculation of the deferred taxes as of June 30, 2013 was 34%. The Company has established a valuation allowance against deferred tax assets of $1,349,543 or 99%, due to the uncertainty regarding realization, comprised primarily of a 100% reserve against the net operating carryforward, 100% reserve against the allowance for doubtful accounts, and 96% reserve against the deferred tax assets attributable to the equity based compensation.

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

	June 30, 2013			June 30, 2012
Statutory tax rate		—	%		—	%
Increase (decrease) in rates resulting from:
Net operating loss carryforward or carryback		(12)	%		(23)	%
Equity based compensation and loss		7	%		—	%
Book/tax depreciation and amortization differences		—	%		—	%
Change in valuation allowance		5	%		25	%
Other		—	%		—	%
Effective tax rate		—	%		2	%

The following is a summary of the significant components of the Company’s deferred tax assets and liabilities at December 31, 2012:

Deferred tax assets:
Equity based compensation	$	236,145
Allowance for doubtful accounts		12,240
Depreciation and amortization timing differences		—
Net operating loss carryforward		1,071,409
On-line training certificate reserve		1,215
Total deferred tax assets		1,321,009
Valuation allowance		(1,310,924)

Deferred tax assets net of valuation allowance		10,085

Less deferred tax assets – non-current, net of valuation allowance		9,781

Deferred tax assets – current, net of valuation allowance	$	304

The effective tax rate used for calculation of the deferred taxes as of December 31, 2012 was 34%. The Company established a valuation allowance against deferred tax assets of $1,310,924, or 99%, due to the uncertainty regarding realization, comprised primarily of a 100% reserve against the net operating carryforward, 100% reserve against the allowance for doubtful accounts, and 95% reserve against the deferred tax assets attributable to the equity based compensation.