Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

United States and Foreign Components of Consolidated Loss Before Income Taxes

U.S and foreign components of consolidated loss before income taxes for the years ended December 2012, 2011 and 2010 was as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Income (loss) before income taxes:
U.S.	$	(16,360	)	$	(17,461	)	$	(17,256	)
Foreign		685			622			439
Loss before income taxes	$	(15,675	)	$	(16,839	)	$	(16,817	)

Provision Benefit for Income Taxes

The provision for income taxes for the years ended December 2012, 2011 and 2010 was as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Provision for income taxes:
Current:
Foreign	$	180	$	143	$	94
Federal		0		0		0
State		0		0		0
Total Current		180		143		94
Deferred:
Foreign		0		0		0
Federal		48		0		0
State		14		0		0
Total Deferred		62	$	0	$	0
Provision for income taxes	$	242	$	143	$	94

Difference Between Provision for Income Taxes and Amounts Computed by Applying Federal Statutory Income Tax Rate to Loss before Taxes

The difference between the provision for income taxes and the amount computed by applying the federal statutory income tax rate to loss before taxes for the years ended December 31, 2012, 2011 and 2010 was as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Federal statutory tax	($	5,329	)	($	5,725	)	($	5,718	)
Stock-based compensation		99			83			95
Lobbying expenses		51			112			112
Warrants		(706	)		(165	)		(13	)
Research Grant		0			0			(166	)
Gain on investment		0			0			(107	)
Foreign rate differential		(53	)		(68	)		(56	)
Expiration of federal net operating losses and credits - tax effected		4,352			1,744			(596	)
Change in valuation allowance		1,761			4,158			6,544
Goodwill amortization		48			0			0
Other		19			4			(1	)
Provision for income taxes	$	242		$	143		$	94

Significant Components of Deferred Tax Assets

The significant components of the Company’s deferred tax assets at December 31, 2012 and 2011 were as follows (in thousands):

	December 31,
	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	137,700		$	137,800
Research and development credit carryforwards		30,800			31,400
Capitalized inventory costs		900			500
Inventory reserve		700			200
Capitalized research and development		9,100			10,300
Capitalized trademark		400			200
Capitalized revenue sharing rights		300			600
Asia license intangible		100			0
Deferred compensation		4,800			4,200
Accrued liabilities		100			400
Depreciation		1,300			1,400
Acqusition costs		200			200
Deferred tenant allowance		200			200
Capital loss carryforwards		3,900			3,900
Total deferred tax assets		190,500			191,300
Valuation allowance		(190,500	)		(191,300	)
Net deferred tax assets	$	0		$	0
Deferred tax liabilities:
Amortization of goodwill	$	62		$	0
Total deferred tax liabilities	$	62		$	0