INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2015

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

	June 30, 2015		June 30, 2014,
Current taxes
Federal	$	—	$	—
State		—		—
Current taxes		—		—
Change in deferred taxes		2,310		(39,550)
Change in valuation allowance		(2,267)		39,594

Provision for income tax expense	$	43	$	44

The following is a summary of the significant components of the Company’s deferred tax assets and liabilities at June 30, 2015:

Deferred tax assets:
Equity based compensation	$	97,276
Allowance for doubtful accounts		7,480
Net operating loss carryforward		1,097,447
On-line training certificate reserve		961
Total deferred tax assets		1,203,164
Valuation allowance		(1,200,644)

Deferred tax assets net of valuation allowance		2,520

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

Deferred tax assets – current, net of valuation allowance	$	190

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

Deferred tax assets:
Equity based compensation	$	97,276
Allowance for doubtful accounts		15,980
Net operating loss carryforward		1,091,064
On-line training certificate reserve		1,154
Total deferred tax assets		1,205,474
Valuation allowance		(1,202,911)

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

	June 30, 2015			June 30, 2014,
Statutory tax rate		—	%		—	%
Increase (decrease) in rates resulting from:
Net operating loss carryforward or carryback		(34)	%		(32)	%
On-line training liability reserve		1	%		—	%
Change in valuation allowance		45	%		32	%
Change in allowance for doubtful accounts		(12)	%		—	%
Effective tax rate		—	%		—	%