Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of loss before income taxes

Information pertaining to the Company’s loss before income taxes and the applicable provision for income taxes is as follows:

	December 31,
	2014			2013			2012
Loss before income taxes:
Domestic loss	$	(7,638,422	)	$	(13,466,322	)	$	(15,356,162	)
Foreign income	936,692			959,964			1,158,248
Total loss before income taxes:	(6,701,730		)	(12,506,358		)	(14,197,914		)
Provision (benefit) for income taxes:
Current:
Federal	$	(843	)	$	(1,823,192	)	$	105,198
State and local	26,145			(209,079		)	18,747
Foreign	400,407			348,300			745,812
	425,709			(1,683,971		)	869,757
Deferred:
Federal	$	14,878		$	14,875		$	14,876
State and local	(3,027		)	981			981
Foreign	72,531			94,347			(99,207		)
	84,382			110,203			(83,350		)
Total provision (benefit) for income taxes:	$	510,091		$	(1,573,768	)	$	786,407

Schedule of deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,
	2014			2013
Deferred Tax Assets:
Allowance for receivables	$	42,861		$	103,085
Deferred revenue	4,198,465			2,344,449
Share-based compensation	3,099,636			4,032,431
Accrued expenses and other liabilities	362,721			559,495
Domestic net operating loss carryforwards	23,386,049			22,553,301
Foreign net operating loss carryforwards	7,503			49,651
Tax credit carryforwards	574,998			581,046
AMT tax credit carryforwards	484,077			484,920
Capital loss carryforwards	75,607			79,140
Fixed assets	527,881			736,436
Intangibles	2,051,230			2,643,806
Sub-total	34,811,028			34,167,760
Valuation allowance	(34,625,398		)	(33,870,014		)
Total Deferred Tax Assets	185,630			297,746
Deferred Tax Liabilities:
Foreign withholding taxes	(111,291		)	(101,713		)
Total Deferred Tax Liabilities	(111,291		)	(101,713		)
Net Deferred Tax Assets	$	74,339		$	196,033

Schedule of effective tax rate reconciliation

The effective tax rate before income taxes varies from the current statutory federal income tax rate as follows: 

	December 31,
	2014			2013			2012
Tax at Federal statutory rate	$	(2,345,606	)	$	(4,377,225	)	$	(4,969,270	)
Increase (reduction) in income taxes resulting from:
State and local taxes	10,182			8,948			(3,130		)
Non-deductible expenses	52,565			25,295			50,070
Settlement costs	(80,406		)	56,882			(553,700		)
Net effect of foreign operations	129,003			552,855			259,592
Uncertain tax positions	28,485			(2,173,905		)	140,625
Change in valuation allowance	2,715,868			4,333,382			5,862,220
	$	510,091		$	(1,573,768	)	$	786,407

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: 

	2014		2013
Balance at January 1,	$	217,237	$	2,085,484
Increases to tax positions taken in prior years	7,400		13,034
Decreases to tax positions taken in prior years	—		—
Increase for tax positions taken during the current year	—		66,139
Expiration of statutes of limitation	—		(1,947,420		)
Balance at December 31,	$	224,637	$	217,237