Income Taxes

3 Months Ended

Mar. 31, 2013

Income Taxes [Abstract]

INCOME TAXES

NOTE 5 - INCOME TAXES

The Company had a net loss for the three months ended March 31, 2013. Based upon its projections for the remainder of 2013, however, it anticipates incurring a small alternative minimum tax (“AMT”) liability for the year ending December 31, 2013, the proportionate share of which is recorded as in the current income tax provision for the three months ended March 31, 2013. The Company established a valuation allowance at September 30, 2012 and retained a full valuation allowance of approximately $15.8 million at March 31, 2013 due to uncertainties regarding the future realization of its net deferred tax assets. As a result, there was no income tax expense or benefit recorded for the three months ended March 31, 2013, other than the AMT liability noted above. The Company had an effective income tax rate of 44.6% for the three months ended March 31, 2012. Total income tax expense for the three months ended March 31, 2012 differed from amounts computed by applying the U.S. statutory tax rates to income taxes due primarily to state taxes and the impact of an adjustment to the estimated permanent differences between book and taxable income related to stock compensation expense in prior periods.