INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes Tables

Schedule of the reconciliation of the provision for income taxes

	2015			2014
Current Income Taxes:
U.S. Federal	$	-		$	-
U.S. states		(19	)		-
United Kingdom		(831	)		(1,640	)
Total current expense		(850	)		(1,640	)
Deferred Income Taxes:
U.S. Federal		-			21,345
U.S. states		-			-
United Kingdom		1,095			1,834
Total deferred benefit		1,095			23,179
Total income tax benefit	$	245		$	21,539

Schedule of effective income tax rate

	2015			2014
Benefit at U.S. Federal statutory income tax rate		35.0	%		35.0	%
Benefit at net U.S. state income tax rate		1.1	%		2.9	%
Derivative extinguished through equity		-34.2	%		0.0	%
Tax expense on U.K. earnings below U.S. rate		-0.5	%		-1.2	%
Non-deductible goodwill impairment		-9.6	%		-7.1	%
State tax rate adjustments		-6.4	%		0.0	%
Other		-9.7	%		-3.1	%
Effect of valuation allowance on U.S. taxes		-24.8	%		-21.1	%
Effective rate of income tax benefit		0.4	%		5.4	%

Schedule of deferred income tax assets and liabilities

	2015			2014
Deferred income tax assets:
U.S. Federal NOL	$	36,500		$	15,050
U.S. states NOL		1,261			-
Derivative liability		28,139			57,871
Stock-based compensation		4,546			2,647
U.S. Federal tax credits		3,000			3,000
Other		353			1,185
Total deferred tax assets		73,799			79,753
Less valuation allowance		(66,677	)		(70,985	)
Net deferred tax assets		7,122			8,768
Deferred income tax liabilities:
Intangible assets		(9,445	)		(11,678	)
Undistributed earnings of U.K. subsidiaries		(1,467	)		(1,400	)
Original issue discount on debt instuments		(528	)		(1,103	)
Total deferred tax liabilities		(11,440	)		(14,181	)
Net deferred tax liability	$	(4,318	)	$	(5,413	)