G. INCOME TAXES

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

The following summarizes the income tax expense (benefit) and effective tax rates:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2014	2013	2014	2013
Consolidated net income (loss) before
income taxes	$ (11,728,669)	$ 13,774,648	$ (20,708,344)	$ (9,066,174)
Income tax expense (benefit)	(576,632)	(2,040,000)	(1,710,632)	(1,998,800)
Effective tax rate	5%	(15%)	8%	22%

The differences between the U.S. federal statutory rate of 35% and the Company’s effective tax rates for the three and nine month periods ended September 30, 2014 and 2013 are due primarily to the tax effects of the excess of book basis over the tax basis in the full cost pool, net operating loss carryforwards, and the nondeductible changes in fair value of preferred stock derivative liability for each period.

The Company knows of no uncertain tax positions and has no unrecognized tax benefits for the nine months ended September 30, 2014 or September 30, 2013. When the Company believes that it is more likely than not that a net operating loss or credit may expire unused, it establishes a valuation allowance against that loss or credit. No valuation allowance has been established as of September 30, 2014 or September 30, 2013.