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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2013
INCOME TAXES [Abstract]  
Schedule of Provision (Benefit) for Income Taxes

 

 

Year ended
December 31, 2011

 

Year ended
December 31, 2012

 

Year ended
December 31,2013

 

 

 

 

 

 

 

 

 

Current income tax expense (benefit)

 

 

 

 

Deferred income tax expense (benefit)

 

(99,479

)

 

(4,826,059

)

 

 

(99,479

)

 

(4,826,059

)

Schedule of Principal Components of Deferred Tax Assets and Liabilities

 

 

December 31, 2012

 

December 31, 2013

 

Current deferred tax assets (liabilities):

 

 

 

 

 

Cost and expense accruals

 

1,754,349

 

847,197

 

Revenue recognition

 

771,061

 

84,241

 

Less: valuation allowance

 

(2,525,410

)

(931,438

)

Current deferred tax assets, net

 

 

 

 

 

 

 

 

 

Non-current deferred tax assets (liabilities):

 

 

 

 

 

Depreciation and amortization

 

631,747

 

72,477

 

Net operating loss carry forwards

 

21,146,362

 

25,247,628

 

Less: valuation allowance

 

(21,778,109

)

(25,320,105

)

Non-current deferred tax assets, net

 

 

 

 

 

 

 

 

 

Intangible assets

 

(4,826,059

)

 

Non-current deferred tax liabilities

 

(4,826,059

)

 

Schedule of Reconciliation between Statutory Tax Rate and Effective Tax Rate

 

 

Year ended
December 31, 2011

 

Year ended
December 31, 2012

 

Year ended
December 31, 2013

 

 

 

 

 

 

 

 

 

Statutory tax rate

 

25.0

%

25.0

%

25.0

%

Differential statutory tax rates

 

(7.9

)%

(4.7

)%

(5.0

)%

Non-deductible expenses

 

(7.9

)%

(1.5

)%

(14.8

)%

Change in deferred tax liabilities

 

 

 

12.3

%

Change in valuation allowance

 

(9.0

)%

(18.8

)%

(5.2

)%

Effective tax rate

 

0.2

%

0.0

%

12.3

%

Schedule of Movement of Valuation Allowances

 

 

Year ended
December 31, 2011

 

Year ended
December 31, 2012

 

Year ended
December 31, 2013

 

 

 

 

 

 

 

 

 

At beginning of year

 

(19,122,901

)

(22,836,709

)

(24,303,518

)

Current year additions

 

(4,452,155

)

(1,415,765

)

(1,239,840

)

Current year reversals

 

1,591,018

 

180,965

 

 

Effect of exchange rate changes

 

(852,671

)

(232,009

)

(708,185

)

 

 

(22,836,709

)

(24,303,518

)

(26,251,543

)