INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Components of Income Tax Expense (Benefit)

Income tax expense for the years ended December 31, 2011, 2012 and 2013 consists of the following:

	2011			2012			2013
Current:
Federal	$	(6,284	)	$	(149,228	)	$	122,278
State		17,710			(28,759	)		34,115
		11,426			(177,987	)		156,393
Deferred:
Federal		980,926			620,429			(28,857	)
State		73,120			59,624			(5,576	)
		1,054,046			680,053			(34,433	)

Total income tax expense	$	1,065,472		$	502,066		$	121,960

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):

	2011			2012			2013

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			6.0
Share based compensation		2.2			3.5			3.5
Other		-			(3.3	)		11.3
		39.7	%		38.4	%		57.8	%

Deferred Tax Assets and Liabilities

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

	December 31,
	2012			2013

Deferred tax assets current:
Accruals not currently deductible	$	93,246		$	117,123
Allowance for doubtful accounts		112,447			155,400
		205,693			272,523
Deferred tax assets long-term:
Stock option compensation		358,530			421,066
		358,530			421,066
Deferred tax liabilities long-term:
Depreciation for tax over books		(673,345	)		(917,812	)
Contingent liabilities impairment		(203,500	)		(158,730	)
Intangible asset amortization for tax over books		(2,479,494	)		(2,374,729	)
		(3,356,338	)		(3,451,271	)
Net long-term deferred tax liability		(2,997,808	)		(3,030,205	)

Net deferred tax asset (liability)	$	(2,792,115	)	$	(2,757,682	)