INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

INCOME TAXES [Abstract]

Summary of Deferred Tax Assets

The tax effect of items that give rise to the deferred tax assets and liabilities are as follows:

	December 31, 2013			December 31, 2012
Deferred tax assets:
Net operating loss carry forward	$	18,454,164		$	15,221,763
Stock-based compensation		3,685,646			1,965,593
Reserves deductible in different periods		--			9,471
Stock Award Payable		40,792
Total deferred tax assets		22,180,602			17,196,827
Deferred tax liabilities:
Fixed assets		(421,025	)		(472,127	)
Less: valuation allowance		(21,759,577	)		(16,724,700	)
	$	-		$	-

Reconciliation of Differences between Effective and Statutory Income Tax Rates

The tax effect of items that give rise to the deferred tax assets and liabilities are as follows:

	December 31, 2013			December 31, 2012
Deferred tax assets:
Net operating loss carry forward	$	18,454,164		$	15,221,763
Stock-based compensation		3,685,646			1,965,593
Reserves deductible in different periods		--			9,471
Stock Award Payable		40,792
Total deferred tax assets		22,180,602			17,196,827
Deferred tax liabilities:
Fixed assets		(421,025	)		(472,127	)
Less: valuation allowance		(21,759,577	)		(16,724,700	)
	$	-		$	-

A reconciliation of the differences between the effective and statutory income tax rates is as follows:

	December 31, 2013					December 31, 2012					December 31, 2011
Federal statutory rate	$	(4,572,234	)	35.0	%	$	(3,406,340	)	35.0	%	$	(2,637,229	)	35.0	%
State income taxes – Idaho		(14,264	)	0.1	%		(37,982	)	0.4	%		(29,406	)	0.4	%
State income taxes - Utah		(199,166	)	1.5	%		(227,169	)	2.3	%		(175,877	)	2.3	%
State and local income taxes - NY		(58,721	)	0.5	%
Change in valuation allowance		5,034,877		(39.0	%)		3,903,777		(40.1	%)		2,743,022		(36.4	%)
Net nontaxable income		(290,623	)	2.2	%		(232,286	)	2.4	%		(84,110	)	1.1	%
Miscellaneous		100,131		(0.3	%)		-					183,600		(2.4	%)
		-		0	%		-		0	%		-		0	%