Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes Tables

Income tax from continuing operations

Income tax from continuing operations for 2012 and 2011 was as follows:

	2012		2011
U.S. Federal income tax expense	$	-	$	(13,000)
State and local income tax expense	$	-	$	(1,000)
Total income tax expense	$	-	$	(14,000)

		2012		2011
Current income tax expense	$	-	$	(14,000)
Deferred income tax expense	$	-	$	-
Total income tax expense	$	-	$	(14,000)

Deferred tax assets

The tax effects of significant temporary differences representing deferred tax assets as of December 31, 2012 and 2011 are as follows:

	2012			2011
Deferred tax assets
Deferred rent	$	17,000		$	19,000
Accrued vacation		16,000			15,000
Tax credit/grants		82,000			82,000
Deferred compensation		16,000			-
Net operating loss carryforward		16,852,000			15,467,000
Accrued bonus		68,000			68,000
Stock based compensation		45,000			25,000
Accrued expenses		38,000			38,000
Property and equipment		19,000			-
Warrants		3,683,000			2,813,000
Other		1,000			5,000
Total deferred tax asset		20,837,000			18,532,000
Deferred tax liabilities
Property and equipment		-			(3,000	)
Change in accounting method - accrued bonus		-			(20,000	)
		-			(23,000	)
Valuation allowance		(20,837,000	)		(18,509,000	)
Net deferred tax asset	$	-		$	-

Reconciliation between actual tax benefits and taxes computed at the statutory Federal rate

Reconciliation between actual tax benefits and taxes computed at the statutory Federal rate of 34 percent for 2012 and 2011 are as follows:

	2012			2011
U.S. Federal income tax benefit at the statutory rate of 34%	$	982,000		$	(142,000	)
Effect of permanent differences		4,000			(9,000	)
Effect of permanent differences - Government Grant		-			4,000
Effect of permanent differences - Warrants		114,000			1,184,000
State income taxes benefit, net of federal tax benefit		99,000			251,000
Other		(1,000	)		(78,000	)
Change in valuation allowance		(1,198,000	)		(1,224,000	)
Income tax expense	$	-		$	(14,000	)