Aspen Group, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Apr. 30, 2014

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

For the

Year Ended

Four Months Ended

April 30,

2014

December 31,

2012

April 30,

2013

April 30,

2012

Current:

Federal

State

Deferred:

Federal

State

Total Income tax expense (benefit)

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


	April 30,			April 30,
	2014			2013
Deferred tax assets:
Net operating loss	$	6,021,134		$	4,256,530
Allowance for doubtful accounts		55,679			23,948
Intangible assets		294,284			238,259
Deferred rent		7,948			11,809
Stock-based compensation		411,374			185,916
Contributions carryforward		93			93
Total deferred tax assets		6,790,512			4,716,555

Deferred tax liabilities:
Property and equipment		(126,297	)		(31,714	)
Total deferred tax liabilities		(126,297	)		(31,714	)

Deferred tax assets, net		6,664,215			4,684,841

Valuation allowance:
Beginning of year		(4,684,841	)		(4,166,510	)
(Increase) during period		(1,979,374	)		(518,331	)
Ending balance		(6,664,215	)		(4,684,841	)

Net deferred tax asset	$	-		$	-

Presentation in the financial statements:


	April 30, 2014		April 30, 2013

Deferred taxes, current portion	$	-	$	-
Deferred taxes, net of current portion		-		-
Net deferred tax assets	$	-	$	-

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


	2014			2013
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	%