Schedule of Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Income Taxes:

Schedule of Components of Income Tax Expense (Benefit)

The components of loss before income taxes and the provision for income taxes for the years ended December 31, 2013, 2012 and 2011 are as follows:

Loss before income taxes:	2013			2012		2011
United States		$	(61,730,000)	$	(30,399,000)	$	(25,483,000)
Foreign		(1,350,000)		(1,463,000)		(1,971,000)
		$	(63,080,000)	$	(31,862,000)	$	(27,454,000)

Income tax benefit	2013			2012		2011
United States		$	-	$	-	$	-
Foreign		(410,000)		-		-
		$	(410,000)	$	-	$	-

Schedule of Income before Income Tax, Domestic and Foreign

The significant components of U.S. deferred income tax expense (benefit) for the years ended December 31, 2013, 2012 and 2011 are as follows:

	2013		2012		2011
Deferred tax (benefit) expense	$	(3,209,000)	$	10,661,000	$	17,774,000
Net operating loss carryforward (generated) expired	(6,536,000)		26,924,000		187,597,000
Valuation allowance increase (decrease)	9,745,000		(37,585,000)		(205,371,000)
Provision for Income taxes	$	-	$	-	$	-

The significant components of foreign deferred income tax expense (benefit) for the years ended December 31, 2013, 2012 and 2011 are as follows:

	2013		2012		2011
Deferred tax expense (benefit)	$	1,406,000	$	(1,041,000)	$	(1,268,000)
Net operating loss carryforward expired (generated)	(15,000)		(79,000)		496,000
Valuation allowance (decrease) increase	(1,391,000)		1,120,000		772,000
Provision for Income taxes	$	-	$	-	$	-

Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective income tax rate differed from the federal statutory rate as follows:

	2013			2012	2011
U.S. Federal statutory tax rate		(35.0%)		(35.0%)	(35.0%)
Deferred state taxes, net of federal benefit			(1.3%)	(3.3%)	(3.1%)
Common stock warrant liability			20.6%	(5.3%)	(4.4%)
Gain on Hypulsion transaction			(1.8%)	0.0%	0.0%
Other, net			0.1%	0.1%	0.6%
Change to uncertain tax positions			(1.3%)	(1.6%)	(57.5%)
Foreign tax rate differential			0.2%	0.5%	0.8%
Expiring attribute carryforward			2.2%	0.0%	5.4%
Adjustments to open deferred tax balance			(0.3%)	(5.8%)	(1.7%)
Writeoff of tax attributes due to imposition of Section
382 limitation			1.5%	165.7%	840.9%
Tax credits			0.0%	0.0%	(0.3%)
Change in valuation allowance			14.5%	(115.3%)	(745.7%)
			(0.6%)	0.0%	0.0%

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of certain assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows:

	U.S.				Foreign
	Years ended December 31,				Years ended December 31,
	2013		2012		2013		2012
Intangible assets	$	59,000	$	130,000	$	999,000	$	694,000
Deferred revenue	3,425,000		2,779,000		-		-
Other reserves and accruals	1,253,000		1,621,000		-		-
Tax credit carryforwards	-		-		84,000		1,569,000
Property, plant and equipment	1,450,000		1,541,000		504,000		541,000
Amortization of stock-based compensation	9,183,000		8,495,000		-		-
Capitalized research & development expenditures	13,775,000		15,846,000		5,195,000		5,384,000
Net operating loss carryforwards	9,883,000		3,347,000		3,556,000		3,541,000
Total deferred tax asset	39,028,000		33,759,000		10,338,000		11,729,000
Valuation allowance	(26,746,000)		(17,001,000)		(10,338,000)		(11,729,000)
Net deferred tax assets	$	12,282,000	$	16,758,000	$	-	$	-
Non-employee stock based compensation	(1,556,000)		(1,556,000)		-		-
Section 382 recognized built in loss	(10,726,000)		(15,202,000)				-
Net deferred tax liability	$	(12,282,000)	$	(16,758,000)	$	-	$	-
Net	$	-	$	-	$	-	$	-

Schedule of Valuation Allowance

.  A reconciliation of the current year change in valuation allowance is as follows:

	Total		U.S.		Foreign
Increase in valuation allowance for current year increase in net operating losses:	$	6,529,000	$	6,536,000	$	(7,000)
Increase in valuation allowance for current year net increase in deferred tax assets
other than net operating losses:	3,587,000		3,209,000		378,000
Decrease in valuation allowance as a result of foreign currency fluctuation	(798,000)		-		(798,000)
Decrease in valuation allowance as a result of tax attribute expiration	(1,478,000)		-		(1,478,000)
Increase in valuation allowance due to current year change of deferred tax assets
as the result of uncertain tax positions.	514,000		-		514,000
Net increase (decrease) in valuation allowance	$	8,354,000	$	9,745,000	$	(1,391,000)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2013		2012		2011
Unrecognized tax benefits balance at beginning of year	$	1,579,000	$	2,046,000	$	17,893,000
Reductions for tax positions of prior years	(471,000)		(503,000)		(15,875,000)
Currency Translation	(75,000)		36,000		28,000
Unrecognized tax benefits balance at end of year	$	1,033,000	$	1,579,000	$	2,046,000