Note 14 - Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 14:              INCOME TAXES

A reconciliation of income tax expense and the amount computed by applying the statutory federal income tax rate to the income before provision for income taxes is as follows:

	December 31, 2015			December 31, 2014
Federal statutory rate applied to income/(loss) before income taxes	$	963,947		$	(1,685,418	)
Increase/(decrease) in income taxes results from:
Current tax expense/(benefit)		(24,739	)		(19,537	)
Non deductible expenses		(1,451,221	)		198,295
Change in deferred assets		97,580			64,449
Change in valuation allowance		389,694			1,422,674
Income tax (benefit)	$	(24,739	)	$	(19,537	)

The components of income tax expense (benefit) for the years ended:

	December 31, 2015			December 31, 2014
Current tax (benefit):	$	(24,739	)	$	(19,537	)
Deferred tax expense/(benefit):
Bad debt allowance		26,059			(45,407	)
Operating loss carryforward		(513,333	)		(1,441,716	)
Amortization of intangibles		5,482			5,482
Patent litigation settlement		92,098			58,967
		(414,433	)		(1,442,211	)
Valuation allowance		389,694			1,422,674
Total tax (benefit)	$	(24,739	)	$	(19,537	)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows:

	December 31, 2015			December 31, 2014
Amortization of intangibles	$	272,734		$	278,216
Bad debt allowance		42,963			69,022
Patent litigation liability accrual		164,342			256,441
Operating loss carryforwards		20,175,531			19,662,198
Gross deferred tax assets		20,655,570			20,265,877
Valuation allowance		(20,655,570	)		(20,265,877	)
Net deferred tax liability/(asset)	$	-0-		$	-0-

The Company has net operating loss carry forwards (NOL) for income tax purposes of approximately $38,395,135.  This loss is allowed to be offset against future income until the year 2035 when the NOL’s will expire.  Other timing differences relate to depreciation and amortization for the stock acquisition of Education Navigator in 1998.  The tax benefits relating to all timing differences have been fully reserved for in the valuation allowance account due to the substantial losses incurred through December 31, 2015.  The change in the valuation allowance for the year ended December 31, 2015 was an increase of $389,694. The Company's tax returns for the prior three years remain subject to examination by major tax jurisdictions.