Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.0.8
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2013
Income Taxes Tables  
Components of the net deferred tax assets

The principal components of the net deferred tax assets are as follows:

 

    Year Ended  
    December 31,  
    2013     2012  
             
Deferred tax assets:            
Net operating loss carryforwards   $ 8,581,000     $ 8,840,000  
Options and warrants not yet deducted, for tax purposes     1,149,000       420,000  
      9,730,000       9,250,000  
                 
Valuation allowance     (4,071,000 )     (3,066,000 )
                 
Net deferred tax assets   $ 5,659,000     $ 6,194,000  
Reconciliation between taxes

The reconciliation between the taxes as shown and the amount that would be computed by applying the statutory federal income tax rate to the income before income taxes is as follows:

 

    Year Ended  
    December 31,  
    2013     2012  
             
Income tax - statutory rate     34.0 %     34.0 %
State and local, net     1.0 %     0.0 %
Valuation allowance on deferred tax assets     0.0 %     (12.0 )%
      35.0 %     22.0 %