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Income Taxes
9 Months Ended
Sep. 30, 2014
Income Taxes  
Income Taxes

 

(10) Income Taxes

As of December 31, 2013, the Company lacked a history of earnings that would allow it to record any of its net deferred tax assets without a corresponding valuation allowance. Using the same methodology, and updating the earnings history based on actual earnings for the nine months ended September 30, 2014, the Company is unable to reduce its valuation allowance. Therefore, no net deferred tax asset is reflected as of September 30, 2014. Additionally, due to some of its historical acquisitions which included indefinite lived intangibles, the Company continue to accumulate a deferred tax liability which is recorded outside the net deferred tax asset and valuation allowance. This deferred tax liability increased by $134,000 and $224,000 during the three and nine months ended September 30, 2014, respectively. The Company recorded a similar amount of deferred tax expense. The Company records no current income tax expense related to its domestic activities due to historical or current net operating losses. Current tax expense of $163,563 and $655,484 for the three and nine months ended September 30, 2014 has been recorded based on our activities in certain foreign jurisdictions which are currently profitable and no loss carryover is available to offset the income.