Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017			2016
Income (loss) before income taxes:
Domestic income (loss)	$	590,660		$	(10,998,240	)
Foreign income	469,347			586,653
Total income (loss) before income taxes:	1,060,007			(10,411,587		)
Provision (benefit) for income taxes:
Current:
Federal	$	2,640		$	(17,626	)
State and local	(85,972		)	1,886
Foreign	238,729			723,502
	155,397			707,762
Deferred:
Federal	$	(530,478	)	$	154,641
State and local	(8,215		)	1,766
Foreign	390,902			(276,962		)
	(147,791		)	(120,555		)
Total provision for income taxes:	$	7,606		$	587,207

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,
	2017			2016
Deferred Tax Assets:
Allowance for receivables	$	76,266		$	100,414
Deferred revenue	1,970,216			3,648,029
Share-based compensation	517,841			2,254,428
Accrued expenses and other liabilities	404,316			418,483
Domestic net operating loss carryforwards	19,572,148			30,714,934
Foreign net operating loss carryforwards	17,997			9,761
Tax credit carryforwards	3,106,022			574,997
AMT tax credit carryforwards	464,571			460,607
Capital loss carryforwards	57,768			78,296
Fixed assets	218,412			489,105
Intangibles	625,126			1,435,994
Sub-total	27,030,683			40,185,048
Valuation allowance	(25,602,357		)	(38,800,877		)
Total Deferred Tax Assets	1,428,326			1,384,171
Deferred Tax Liabilities:
Deferred state income tax	(450,797		)	(923,553		)
Foreign withholding taxes	(472,112		)	(137,659		)
Total Deferred Tax Liabilities	(922,909		)	(1,061,212		)
Net Deferred Tax Assets	$	505,417		$	322,959

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,
	2017			2016
Tax at Federal statutory rate	$	371,003		$	(3,644,056	)
Increase (reduction) in income taxes resulting from:
State and local taxes	355,888			2,172
Non-deductible expenses	(50,579		)	(28,812		)
Stock compensation	1,273,956			—
Net effect of foreign operations	(14,022		)	232,858
Uncertain tax positions	(41,482		)	12,440
Impact of U.S tax reform	14,295,386			—
Change in valuation allowance	(15,072,298		)	4,011,710
Foreign withholding taxes	468,376			—
Decrease in unrecognized tax benefits	(1,427,906		)	—
Other	(150,716		)	895
	$	7,606		$	587,207

Schedule of unrecognized tax benefits

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

	2017			2016
Balance at January 1,	$	217,461		$	217,289
Increases to tax positions taken in prior years	10,104			4,510
Decreases to tax positions taken in prior years	—			—
Increase for tax positions taken during the current year	—			—
Expiration of statutes of limitation	(53,169		)	(3,323		)
Translation	5,806			(1,015		)
Balance at December 31,	$	180,202		$	217,461