INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

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

	September 30, 2013		September 30, 2012
Current taxes
Federal	$	--	$	--
State		--		--
Current taxes		--		--
Change in deferred taxes		(46,799)		840,909
Change in valuation allowance		47,762		(818,060)
Provision for income tax expense	$	963	$	22,849

 

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

	September 30, 2013		September 30, 2012
Current taxes
Federal	$	--	$	--
State		--		--
Current taxes		--		--
Change in deferred taxes		(82,091)		667,494
Change in valuation allowance		86,381		(631,149)
Provision for income tax expense	$	4,290	$	36,345

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

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

Deferred tax assets:
Equity based compensation	$	205,903
Allowance for doubtful accounts		13,260
Depreciation and amortization timing differences		--
Net operating loss carryforward		1,183,114
On-line training certificate reserve		823
Total deferred tax assets		1,403,100
Valuation allowance		(1,397,305)
Deferred tax assets net of valuation allowance		5,795
Less deferred tax assets – non-current, net of valuation allowance		5,589
Deferred tax assets – current, net of valuation allowance	$	206

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

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

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

	September 30, 2013			September 30, 2012
Statutory tax rate		--	%	--	%
Increase (decrease) in rates resulting from:
Net operating loss carryforward or carryback		(13)	%	62	%
Equity based compensation and loss		3	%	(4)	%
Book/tax depreciation and amortization differences		--	%	--	%
Change in valuation allowance		10	%	(55)	%
Other		--	%	--	%
Effective tax rate		--	%	3	%