Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2016			2015
Loss before income taxes:
Domestic loss	$	(10,998,240	)	$	(2,310,565	)
Foreign income	586,653			756,747
Total loss before income taxes:	(10,411,587		)	(1,553,818		)
Provision (benefit) for income taxes:
Current:
Federal	$	(17,626	)	$	3,939
State and local	1,886			16,002
Foreign	723,502			482,242
	707,762			502,183
Deferred:
Federal	$	154,641		$	(167,634	)
State and local	1,766			7,006
Foreign	(276,962		)	33,988
	(120,555		)	(126,640		)
Total provision for income taxes:	$	587,207		$	375,543

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,
	2016			2015
Deferred Tax Assets:
Allowance for receivables	$	100,414		$	72,539
Deferred revenue	3,648,029			2,939,462
Share-based compensation	2,254,428			3,095,723
Accrued expenses and other liabilities	418,483			307,565
Domestic net operating loss carryforwards	30,714,934			26,023,318
Foreign net operating loss carryforwards	9,761			99,544
Tax credit carryforwards	574,997			574,997
AMT tax credit carryforwards	460,607			483,285
Capital loss carryforwards	78,296			77,586
Fixed assets	489,105			554,154
Intangibles	1,435,994			1,762,519
Sub-total	40,185,048			35,990,692
Valuation allowance	(38,800,877		)	(35,121,608		)
Total Deferred Tax Assets	1,384,171			869,084
Deferred Tax Liabilities:
Deferred state income tax	(923,553		)	(541,359		)
Foreign withholding taxes	(137,659		)	(128,261		)
Total Deferred Tax Liabilities	(1,061,212		)	(669,620		)
Net Deferred Tax Assets	$	322,959		$	199,464

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,
	2016			2015
Tax at Federal statutory rate	$	(3,644,056	)	$	(543,836	)
Increase (reduction) in income taxes resulting from:
State and local taxes	2,172			3,195
Non-deductible expenses	(28,812		)	(31,199		)
Net effect of foreign operations	232,858			235,850
Uncertain tax positions	12,440			26,814
Change in valuation allowance	4,011,710			680,780
Other	895			3,939
	$	587,207		$	375,543

Schedule of unrecognized tax benefits

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

	2016			2015
Balance at January 1,	$	217,289		$	224,637
Increases to tax positions taken in prior years	4,510			9,306
Decreases to tax positions taken in prior years	—			—
Increase for tax positions taken during the current year	—			—
Expiration of statutes of limitation	(3,323		)	—
Translation	(1,015		)	(16,654		)
Balance at December 31,	$	217,461		$	217,289