INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Components of Income Tax Expense (Benefit)

Income tax expense for the years ended December 31, 2010, 2011 and 2012 consists of the following:

	2010		2011			2012
Current:
Federal	$	270,477	$	(6,284	)	$	(149,228	)
State		19,153		17,710			(28,759	)
		289,630		11,426			(177,987	)
Deferred:
Federal		666,363		980,926			620,429
State		60,677		73,120			59,624
		727,040		1,054,046			680,053

Total income tax expense	$	1,016,670	$	1,065,472		$	502,066

Effective Income Tax Rate Reconciliation

The Company's effective tax rate differs from the statutory rate due to the impact of the following (expressed as a percentage of income before income taxes):

	2010			2011			2012


Statutory federal income tax expense		34.0	%		34.0	%		34.0	%
State income tax expense		3.0			3.0			3.0
Effect of permanent differences -
Travel and entertainment expenses		-			0.5			1.1
Share based compensation		4.3			2.2			3.5
Other		-			-			(3.3	)
		41.3	%		39.7	%		38.4	%

Deferred Tax Assets and Liabilities

Temporary differences comprise the deferred tax assets and liabilities in the consolidated balance sheets as follows:

	December 31,
	2011			2012

Deferred tax assets current:
Accruals not currently deductible	$	85,607		$	93,246
Allowance for doubtful accounts		111,720			112,447
		197,327			205,693
Deferred tax assets long-term:
Stock option compensation		589,879			358,530
		589,879			358,530
Deferred tax liabilities long-term:
Depreciation for tax over books		(241,235	)		(673,345	)
Contingent liabilities impairment		(203,500	)		(203,500	)
Intangible asset amortization for tax over books		(2,454,423	)		(2,479,494	)
		(2,899,158	)		(3,356,338	)
Net long-term deferred tax liability		(2,309,279	)		(2,997,808	)

Net deferred tax asset (liability)	$	(2,111,952	)	$	(2,792,115	)