Annual report pursuant to Section 13 and 15(d)

Note 18 - INCOME TAXES (Tables)

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Note 18 - INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2013
Note 18 - Income Taxes Tables  
Provision for income taxes

The components of the income tax provisions for 2013 and 2012 are as follows:

 

    2013     2012  
Current provision:            
Federal   $ -     $ -  
State     1,600       1,600  
      1,600       1,600  
Deferred benefit:                
Federal     (946,991 )     (290,248 )
State     (246,076 )     (75,465 )
      (1,193,068 )     (365,713 )
Change in valuation allowance     1,193,068       365,713  
Total Provision   $ 1,600     $ 1,600  
Federal income tax

The difference between the income tax provision and income taxes computed using the U. S. federal income tax rate of 34% consisted of the following:

 

    2013     2012  
Provision at statutory rate     34.0 %     34.0 %
State taxes, net of federal benefit     5.8 %     5.8 %
Other     (8.8 %)     1.3 %
Change in valuation allowance     (31.1 %)     (41.4 %)
Total     (0.1 %)     (0.2 %)

 

Deferred tax assets

Significant components of the Company’s deferred taxes as of December 31, 2013 and 2012 are as follows:

 

    2013     2012  
Deferred tax assets:            
Net operating loss carry forwards   $ 1,239,529     $ 818,573  
Share-based compensation     86,806       62,039  
Accural to cash     622,243       -  
Other     11,297       11,298  
Total deferred tax assets     1,959,875       891,910  
Valuation allowance     (1,768,722 )     (664,320 )
      191,153       227,590  
                 
Deferred tax liabilities:                
Tax deductible licensing agreement     (187,645     (132,300 )
Accrual to cash     -       (94,516 )
Other     (3,509     (774 )
                 
Total deferred tax assets (liabilities)     (191,153     (227,590 )
                 
Net deferred tax assets (liabilities)   $ -     $ -