Annual report pursuant to section 13 and 15(d)

Note 11: Provision for Income Taxes (Tables)

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Note 11: Provision for Income Taxes (Tables)
12 Months Ended
Sep. 30, 2012
Note 11 Provision For Income Taxes Tables  
Reconciliation of the differences between the effective and statutory income tax rates

A reconciliation of the differences between the effective and statutory income tax rates for years ended September 30, is as follows:

 

    2012     2011  
    Amount     Percent     Amount     Percent  
                                 
Federal statutory rates   $ (535,573 )     34%   $ (1,870,764 )     34%
State income taxes     (52,946 )     3%     (184,942 )     3%
Write off of deferred tax asset related to vested restricted stock     10,670       (1)%     184,050       (3)%
Permanent differences     3,411       (0)%     –       –  
Valuation allowance against net deferred tax assets     574,438       (36)%        1,920,862       (35)%   
Other             0%     (49,206 )     1%
Effective rate   $ –       0%   $ –       0%

 

  

Deferred income tax assets and liabilities

At September 30, deferred income tax assets and liabilities were comprised of:

 

    2012     2011  
Deferred income tax asset, current:                
 Book to tax differences in accounts receivable   $ 582,549     $ 738,671  
 Book to tax differences in prepaid assets and accrued expenses     (7,774 )     (20,502 )
Total deferred income tax asset, current     574,775       718,169  
Less: valuation allowance     (574,775 )     (718,169 )
Deferred income tax asset, current, net     –       –  
                 
Deferred income tax asset, long-term:                
 Net operating loss carryforwards     10,012,906       9,060,073  
 Book to tax differences for stock based compensation     6,407       17,706  
 Book to tax differences in intangible assets     6,961,861       7,295,815  
 Book to tax differences in other     326       326  
 Book to tax differences in depreciation     (2,072,674 )     (1,798,370 )
Total deferred income tax asset, long-term     14,908,825       14,575,550  
Less: valuation allowance     (14,908,825 )     (14,575,550 )
Deferred income tax asset, net     –       –  
                 
Total deferred income tax asset   $ –     $ –