Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income from Operations Before Income Taxes

Income tax data for the years ended December 31, 2013 and 2012, and the nine months ended December 31, 2011:

	December 31, 2013		December 31, 2012		December 31, 2011
The components of income from operations before income taxes are as follows:
Domestic	$	12,782,598	$	11,175,638	$	(1,845,024	)
Foreign		10,231,223		95,768		248,143
Total	$	23,013,821	$	11,271,406	$	(1,596,881	)

Provision for Income Taxes

The current and deferred components of the provision for income taxes on operations are as follows:
Current	$	4,123,752	$	312,630		$	—
Deferred		2,796,914		(3,197,261	)		15,744
Total	$	6,920,666	$	(2,884,631	)	$	15,744
The jurisdictional components of the provision for income taxes on operations are as follows:
Federal	$	3,322,032	$	(2,915,673	)	$	48,000
State		1,305,388		115,307			—
Foreign		2,293,245		(84,265	)		(32,256	)
Total	$	6,920,666	$	(2,884,631	)	$	15,744

Consolidated Deferred Tax Assets or Liabilities

The Company’s consolidated deferred tax assets (liabilities) consist of the following:

	December 31, 2013			December 31, 2012
Deferred tax assets:
Temporary timing differences	$	3,018,000		$	4,152,000
Net operating loss carryforwards		12,264,000			15,041,000
Tax business credits carryforwards		1,520,000			2,160,000
Total deferred tax assets		16,802,000			21,353,000
Valuation allowance		(16,571,000	)		(18,307,000	)
Net deferred tax assets	$	231,000		$	3,046,000
Deferred tax liabilities:
Goodwill	$	(44,000	)	$	(72,000	)
Acquired intangibles		—			—
Net deferred tax assets (liabilities)	$	187,000		$	2,974,000

Reconciliation of Federal Statutory Rate to Effective Income Tax Rate

The reconciliation of the federal statutory rate to the effective income tax rate for the fiscal years ended December 31, 2013 and 2012, and the nine-month fiscal year ended December 31, 2011 is as follows:

	Period Ended,
	December 31, 2013					December 31, 2012					December 31, 2011
Income (loss) before income taxes	$	23,013,821			%	$	11,271,406			%	$	(1,596,881	)		%
Expected tax (recovery) at statutory rate		7,824,699		34.0	%		3,944,996		35.0	%		(542,939	)	(34.0	)%
Adjustments due to:
Difference between U.S. and foreign tax		(1,227,747	)	(5.3	)%		(8,332	)	(0.1	)%		(19,287	)	(1.2	)%
State income and franchise taxes		1,121,821		4.9	%		357,866		3.2	%		52,905		3.3	%
Business tax credits		(74,999	)	(0.3	)%		(67,276	)	(0.6	)%		(68,926	)	(4.3	)%
Transaction costs		—		0.0	%		—		0.0	%		240,842		15.1	%
Gain on bargain purchase		—		0.0	%		(82,422	)	(0.7	)%		(112,427	)	(7.0	)%
Permanent differences		(298,185	)	(1.3	)%		242,629		2.1	%		218,989		13.7	%
Change in valuation allowance		(508,629	)	(2.21	)%		(7,272,092	)	(64.5	)%		246,587		15.4	%
Other		83,706		0.4	%		—		0.0	%		—		0.0	%
Provision (benefit) for income taxes	$	6,920,666		30.1	%	$	(2,884,631	)	(25.6	)%	$	15,744		1.0	%

Reconciliation of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

	December 31, 2013
Unrecognized tax benefits at January 1, 2013	$	—
Gross increases – tax positions in prior period		1,637,936
Gross increases – tax positions in current period		37,249
Unrecognized tax benefits at December 31, 2013	$	1,675,185