14.	INCOME TAXES

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

	March 31, 2014		March 31, 2013
Current taxes
Federal	$	—	$	—
State		—		—
Current taxes		—		—
Change in deferred taxes		(11,730)		(5,567)
Change in valuation allowance		11,774		9,350

Provision for income tax expense	$	44	$	3,783

The following is a summary of the significant components of the Company’s deferred tax assets and liabilities at March 31, 2014:

Deferred tax assets:
Equity based compensation	$	97,276
Allowance for doubtful accounts		13,260
Net operating loss carryforward		1,136,206
On-line training certificate reserve		932
Total deferred tax assets		1,247,674
Valuation allowance		(1,245,111)

Deferred tax assets net of valuation allowance		2,563

Less deferred tax assets – non-current, net of valuation allowance		2,330

Deferred tax assets – current, net of valuation allowance	$	233

The effective tax rate used for calculation of the deferred taxes as of March 31, 2014 was 34%. The Company has established a valuation allowance against deferred tax assets of $1,245,111 or 99.8%, 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 97% 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:

	March 31, 2014			March 31, 2013
Statutory tax rate		—	%		—	%
Increase (decrease) in rates resulting from:
Net operating loss carryforward or carryback		(31)	%		(7)	%
Equity based compensation and loss		—	%		7	%
Book/tax depreciation and amortization differences		—	%		—	%
Change in valuation allowance		31	%		—	%
Other		—	%		—	%
Effective tax rate		—	%		—	%

The following is a summary of the significant components of the Company’s deferred tax assets and liabilities at December 31, 2013:

Deferred tax assets:
Equity based compensation	$	97,276
Allowance for doubtful accounts		13,260
Depreciation and amortization timing differences		—
Net operating loss carryforward		1,124,299
On-line training certificate reserve		1,109
Total deferred tax assets		1,235,944
Valuation allowance		(1,233,337)

Deferred tax assets net of valuation allowance		2,607

Less deferred tax assets – non-current, net of valuation allowance		2,330

Deferred tax assets – current, net of valuation allowance	$	277

The effective tax rate used for calculation of the deferred taxes as of December 31, 2013 was 34%. The Company has established a valuation allowance against deferred tax assets of $1,235,879 or 99.8%, 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 % reserve against the deferred tax assets attributable to the equity based compensation.