13. Income taxes

The components of the Company's income (loss) before provision for income taxes by jurisdiction are as follows:

	Year ended December 31,
	2014		2013			2012
United States	$	2,563,036	$	537,097		$	(6,307,445	)
Outside United States		1,397,812		(474,222	)		2,002,251

Income (loss) before provision for income taxes, net	$	3,960,848	$	62,875		$	(4,305,194	)

The components of the provision for income taxes are as follows:

	Year ended December 31,
	2014		2013			2012
Current tax:
United States—Federal	$	—	$	—		$	—
United States—State and local		9,456		5,754			11,056
Outside United States		756,752		619,043			417,837

Total current tax		766,208		624,797			428,893

Deferred tax:
United States—Federal		—		—			—
United States—State and local		—		—			—
Outside United States		34,255		(583,928	)		(281,782	)

Total deferred tax		34,255		(583,928	)		(281,782	)

Provision for income taxes, net		800,463	$	40,869		$	147,111

For 2014, the provision for income taxes of $0.8 million related primarily to foreign entities. The Company has tax carry forwards in its federal, state and foreign jurisdictions. Based on all available evidence, it is not more likely than not that the Company would realize the benefit from $29.9 million of the deferred tax assets. Therefore, a valuation allowance of $28.5 million is recorded, which takes into account a deferred tax liability of $0.7 million. The Company has recorded a tax benefit for tax attribute carry forwards in the jurisdictions in which there is sufficient positive evidence that the deferred tax asset will be realized, resulting in a net deferred tax asset of $0.7 million.

For 2013, the provision for income taxes of $40,869 related primarily to foreign entities. The Company has tax carry forwards in its federal, state and foreign jurisdictions. Based on all available evidence, it is not more likely than not that the Company would realize the benefit from $31.2 million of the deferred tax assets. Therefore, a valuation allowance of $29.4 million is recorded, which takes into account a deferred tax liability of $1.0 million. The Company has recorded a tax benefit for tax attribute carry forwards in the jurisdictions in which there is sufficient positive evidence that the deferred tax asset will be realized, resulting in a net deferred tax asset of $0.8 million.

For 2012, the provision for income taxes of $0.1 million related primarily to foreign entities. The Company has tax attribute carry forwards in its federal, state and foreign jurisdictions. Based on all available evidence, it is not more likely than not that the Company would realize the benefit from $29.2 million of the deferred tax assets. Therefore, a valuation allowance of $29.2 million is recorded and a deferred tax benefit of $0.2 million is recorded. The Company has recorded a tax benefit for tax attribute carry forwards in the jurisdictions in which there is sufficient positive evidence that the deferred tax asset will be realized, resulting in a net deferred tax asset of $0.2 million.

The table below shows reconciliation from the U.S. Federal statutory income rate of 34.0% to the effective income tax rate:

	Year ended December 31,
	2014			2013			2012
Federal statutory rate		34.0	%		34.0	%		34.0	%
State tax (less than 0.2% for 2012)		0.24			9.2			—
Permanent differences		2.49			54.3			(4.8	)
Foreign tax rates at rates different from U.S. rates		(22.06	)		(82.7	)		18.8
Valuation allowance		6.05			50.2			(51.4	)

Total tax provision		20.72	%		65.0	%		(3.4	)%

With few exceptions, the statute of limitations for the years 2010 and prior has expired. Earlier years related to certain foreign jurisdictions remain subject to examination. There are no income tax returns currently under examination. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses were generated and carried forward, and may make adjustments up to the amount of the net operating loss carry forward. As of December 31, 2014 and 2013, the Company has no significant uncertain tax positions and, therefore, has not recorded any significant liabilities, interest or penalties for uncertain tax positions. To the extent that the Company records any interest or penalties, these amounts will be recorded as part of the income tax provision. If the Company's positions are sustained by the taxing authorities, there will be no impact to the Company's income tax provision. There were no significant changes to the Company's unrecognized tax benefits during the year ended December 31, 2014, and the Company does not anticipate any other significant changes to the unrecognized tax benefits during the next twelve months.

The components of deferred tax assets and liabilities are as follows:

	As of December 31,
	2014			2013
Deferred tax assets:
Net operating loss carry-forwards	$	25,425,715		$	27,188,180
Stock options		3,482,800			3,514,890
Bonuses and salaries		26,993			33,111
Restricted stock		91,580			73,538
Provision for doubtful accounts		14,568			13,703
Foreign nonrefundable withholding tax		478,295			318,163
Foreign tax credit		335,698			—
Other		—			22,937

Total deferred tax assets		29,855,649			31,164,522

Less: Valuation allowance		(28,475,080	)		(29,416,464	)

Net deferred tax assets		1,380,569			1,748,058

Deferred tax liabilities:
Depreciation and amortization		(653,074	)		(981,816	)

Total deferred tax liabilities		(653,074	)		(981,816	)

Total deferred tax assets, net*	$	727,495		$	766,242

*	As of December 31, 2014 and 2013, deferred tax assets, net, are included in the balance sheet classification "Security deposits and other assets."

As of December 31, 2014, the Company has available federal net operating loss carry forwards of $67.2 million, state net operating loss carry forwards, primarily New York State, of $68.1 million, and various foreign net operating loss carry forwards, the most significant of which expire from 2020 through 2033.

The Company assesses the recoverability of its net operating loss carry forwards and other deferred tax assets and records a valuation allowance to the extent recoverability does not satisfy the "more likely than not" recognition criteria. The Company continues to maintain the valuation allowance until sufficient positive evidence exists to support full or partial reversal. As of December 31, 2014, the Company had a valuation allowance totaling $28.5 million against its deferred tax assets, net of deferred tax liabilities, due to insufficient positive evidence, primarily consisting of historical losses within the taxing jurisdictions that have tax attributes and deferred tax assets.