6.	INCOME TAXES (restated)

The Company is subject to taxation in the U.S., various state and foreign jurisdictions. We continue to record a full valuation allowance against our U.S. net deferred tax assets as it is not more likely than not that we will realize a benefit from these assets in a future period. In future periods, tax benefits and related deferred tax assets will be recognized when management concludes realization of such amounts is to be more likely than not.

A net benefit of ($406,639) was recorded to the income tax provision for the three month period ending September 30, 2013 resulting in an effective tax rate of 122.98% for the period. The income tax benefit relates primarily to our foreign operations partially offset by state minimum taxes as all of our other USA tax benefits are reduced by a full valuation allowance. During the three month period ending September 30, 2013, the UK government reduced the corporate enacted tax rate resulting in a net tax benefit of ($379,236) being recorded in the quarter on existing foreign deferred tax assets and liabilities. Our income tax expense and effective tax rate were $8,539 and 1.09%, respectively for the same period in 2012. The income tax provision relates primarily to state minimum taxes as all of our other USA tax benefits are reduced by a full valuation allowance.

A net benefit of ($347,363) was recorded to the income tax provision for the nine month period ending September 30, 2013 resulting in an effective tax rate of 95.15% for the period. The income tax benefit relates primarily to our foreign operations partially offset by state minimum taxes as all of our other USA tax benefits are reduced by a full valuation allowance. During the nine month period ending September 30, 2013, the UK government reduced the corporate enacted tax rate resulting in a net tax benefit of ($379,236) being recorded in the quarter on existing foreign deferred tax assets and liabilities. Our income tax expense and effective tax rate were $23,995 and 1.08%, respectively for the same period in 2012. The income tax provision relates primarily to state minimum taxes as our USA tax benefits are reduced by a full valuation allowance.