Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

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,
	2013			2012			2011
Loss before income taxes:
Domestic loss	$	(13,466,322	)	$	(15,356,162	)	$	(24,181,349	)
Foreign income	959,964			1,158,248			2,021,398
Total loss before income taxes:	(12,506,358		)	(14,197,914		)	(22,159,951		)
(Benefit)/provision for income taxes:
Current:
Federal	$	(1,823,192	)	$	105,198		$	94,974
State and local	(209,079		)	18,747			11,453
Foreign	348,300			745,812			1,262,339
	(1,683,971		)	869,757			1,368,766
Deferred:
Federal	$	14,875		$	14,876		$	14,876
State and local	981			981			981
Foreign	94,347			(99,207		)	(176,291		)
	110,203			(83,350		)	(160,434		)
Total (benefit)/provision for income taxes:	$	(1,573,768	)	$	786,407		$	1,208,332

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,
	2013			2012
Deferred Tax Assets:
Allowance for receivables	$	103,085		$	350,738
Deferred revenue	2,344,449			3,104,017
Share-based compensation	4,032,431			6,236,175
Accrued expenses and other liabilities	559,495			669,844
Domestic net operating loss carryforwards	22,553,301			16,526,224
Foreign net operating loss carryforwards	49,651			405,818
Tax credit carryforwards	581,046			654,966
AMT tax credit carryforwards	484,920			485,817
Capital loss carryforwards	79,140			80,055
Fixed assets	736,436			957,107
Intangibles	2,643,806			3,195,185
Sub-total	34,167,760			32,665,946
Valuation allowance	(33,870,014		)	(32,186,965		)
Total Deferred Tax Assets	$	297,746		$	478,981
Deferred Tax Liabilities:
Foreign withholding taxes	(101,713		)	(96,360		)
Total Deferred Tax Liabilities	$	(101,713	)	$	(96,360	)
Net Deferred Tax Assets	$	196,033		$	382,621

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,
	2013			2012			2011
Tax at Federal statutory rate	$	(4,377,225	)	$	(4,969,270	)	$	(7,755,983	)
Increase (reduction) in income taxes resulting from:
State and local taxes	8,948			(3,130		)	(59		)
Non-deductible expenses	25,295			50,070			(25,071		)
Settlement costs	56,882			(553,700		)	2,625,000
Net effect of foreign operations	552,855			259,592			530,630
Uncertain tax positions	(2,173,905		)	140,625			118,351
Change in valuation allowance	4,333,382			5,862,220			5,715,464
	$	(1,573,768	)	$	786,407		$	1,208,332

Schedule of unrecognized tax benefits

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

	2013			2012
Balance at January 1,	$	2,085,484		$	2,081,912
Increases to tax positions taken in prior years	13,034			3,572
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,	$	217,237		$	2,085,484