Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2016 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Deferred Tax Valuation Allowance |
The activity in the deferred tax valuation
allowance was as follows for the years ended December 31, 2016 and 2015:
| |
|
Year ended December 31, |
|
| |
|
2016 |
|
|
2015 |
|
| Beginning balance |
|
$ |
2,759,641 |
|
|
$ |
1,902,022 |
|
| Provision |
|
|
3,429,175 |
|
|
|
857,619 |
|
| Adjustments/true-ups |
|
|
1,032,627 |
|
|
|
- |
|
| Ending balance |
|
$ |
7,221,443 |
|
|
$ |
2,759,641 |
|
|
| Schedule of Income before Income Tax, Domestic and Foreign |
Income (loss) before tax for financial
reporting purposes during the years ended December 31, 2016 and 2015 consisted of the following:
| |
|
Year ended December 31, |
|
| |
|
2016 |
|
|
2015 |
|
| United States |
|
$ |
(9,577,372 |
) |
|
$ |
(5,729,949 |
) |
| Foreign |
|
|
977,451 |
|
|
|
1,180,357 |
|
| Total |
|
$ |
(8,599,921 |
) |
|
$ |
(4,549,592 |
) |
|
| Schedule of Components of Income Tax Expense (Benefit) |
The provision for income taxes for the
years ended December 31, 2016 and 2015 consisted of the following:
| |
|
Year ended December 31, |
|
| |
|
2016 |
|
|
2015 |
|
| Current: |
|
|
|
|
|
|
|
|
| Federal |
|
$ |
(1,661 |
) |
|
$ |
(68,893 |
) |
| State |
|
|
17,805 |
|
|
|
31,350 |
|
| Foreign |
|
|
6,397 |
|
|
|
4,060 |
|
| |
|
|
22,541 |
|
|
|
(33,483 |
) |
| Deferred: |
|
|
|
|
|
|
|
|
| Federal |
|
|
135,769 |
|
|
|
149,833 |
|
| State |
|
|
38,492 |
|
|
|
21,436 |
|
| |
|
|
174,261 |
|
|
|
171,269 |
|
| Total income tax provision |
|
$ |
196,802 |
|
|
$ |
137,786 |
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The components of the Company’s
deferred income taxes as of December 31, 2016 and 2015 are as follows:
| |
|
December 31, 2016 |
|
|
December 31, 2015 |
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
| Allowance for doubtful accounts |
|
$ |
59,639 |
|
|
$ |
97,184 |
|
| Accrued bonus |
|
|
339,770 |
|
|
|
- |
|
| Deferred revenue |
|
|
10,206 |
|
|
|
14,023 |
|
| Deferred rent |
|
|
1,830 |
|
|
|
3,957 |
|
| Property and intangible assets |
|
|
2,606,804 |
|
|
|
215,112 |
|
| State net operating loss ("NOL") carryforwards |
|
|
461,055 |
|
|
|
329,857 |
|
| Federal net operating loss ("NOL") carryforward |
|
|
3,611,199 |
|
|
|
2,211,199 |
|
| Cumulative translation adjustment |
|
|
143,985 |
|
|
|
155,143 |
|
| Stock based compensation |
|
|
362,222 |
|
|
|
- |
|
| Other |
|
|
118,003 |
|
|
|
217,060 |
|
| Valuation allowance |
|
|
(7,221,443 |
) |
|
|
(2,759,641 |
) |
| Total deferred tax assets |
|
|
493,270 |
|
|
|
483,894 |
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
|
| Earnings and profits of the Pakistani subsidiary |
|
|
(493,270 |
) |
|
|
(483,894 |
) |
| Goodwill amortization |
|
|
(345,530 |
) |
|
|
(171,269 |
) |
| Net deferred tax liability |
|
$ |
(345,530 |
) |
|
$ |
(171,269 |
) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of the federal statutory
income tax rate (34%) to the Company’s effective income tax rate (determined in dollars) for the years ended December 31,
2016 and 2015 is as follows:
| |
|
Year ended December 31, |
|
| |
|
2016 |
|
|
2015 |
|
| Federal tax (benefit) at statutory rate |
|
$ |
(2,923,973 |
) |
|
$ |
(1,546,861 |
) |
| Increase (decrease) in income taxes resulting from: |
|
|
|
|
|
|
|
|
| State tax expense, net of federal benefit |
|
|
(458,954 |
) |
|
|
(218,456 |
) |
| Non-deductible items |
|
|
10,942 |
|
|
|
17,456 |
|
| Undistributed earnings from foreign subsidiaries |
|
|
6,400 |
|
|
|
5,131 |
|
| Deferred true-up |
|
|
(1,073,676 |
) |
|
|
146,946 |
|
| Valuation allowance |
|
|
4,461,802 |
|
|
|
857,619 |
|
| Additional tax goodwill |
|
|
174,261 |
|
|
|
884,517 |
|
| Other |
|
|
- |
|
|
|
(8,566 |
) |
| Total provision |
|
$ |
196,802 |
|
|
$ |
137,786 |
|
|