Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes Tables

Components of income tax expense (benefit)

The components of income tax expense (benefit) are as follows:

	For the Year Ended
	December 31,
	2012		2011
Current:
Federal	$	-	$	-
State		-		-
		-		-
Deferred:
Federal		-		-
State		-		-
		-		-
Total Income tax expense (benefit)	$	-	$	-

Deferred income tax assets and liabilities

Significant components of the Company's deferred income tax assets and liabilities are as follows:

	December 31,
	2012			2011
Deferred tax assets:
Net operating loss	$	3,649,651		$	2,064,725
Allowance for doubtful accounts		261,946			17,637
Intangible assets		118,740			-
Deferred rent		7,883			9,473
Stock-based compensation		128,827			-
Contributions carryforward		93			-
Total deferred tax assets		4,167,140			2,091,835
Deferred tax liabilities:
Intangible assets		-			(148,345	)
Property and equipment		(630	)		(805	)
Total deferred tax liabilities		(630	)		(149,150	)
Deferred tax assets, net		4,166,510			1,942,685
Valuation allowance:
Beginning of year		(1,942,685	)		(1,152,977	)
(Increase) decrease during year		(2,223,825	)		(789,708	)
Ending balance		(4,166,510	)		(1,942,685	)
Net deferred tax asset	$	-		$	-

Reconciliation of income tax

A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows:

	For the Year Ended
	December 31,
	2012			2011
Statutory U.S. federal income tax rate		34.0	%		34.0	%
State income taxes, net of federal tax benefit		3.1			3.1
Other		(0.1	)		(0.1	)
Change in valuation allowance		(37.0	)		(37.0	)
Effective income tax rate		0.0	%		0.0	%