INCOME TAXES

3 Months Ended

Mar. 31, 2013

INCOME TAXES [Abstract]

INCOME TAXES

4. INCOME TAXES

The (expense) benefit from income taxes consisted of the following:

	Three Months Ended
	March 31,
	2013				2012
Current		$	—			$	—
Deferred			(380	)			(1,775	)
		$	(380	)		$	(1,775	)
Less: Changes in valuation allowance			380				1,775
Total		$	—			$	—

The Company and its wholly-owned subsidiaries file income tax returns in the United States.  Income tax expense (benefit) is determined using the asset and liability method.  Deferred income taxes are recognized at currently enacted tax rates for the expected future tax consequences attributable to temporary differences between amounts reported for income tax purposes and financial reporting purposes. Deferred taxes are provided for the undistributed earnings as if they were to be distributed. The Company records a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has not recorded any liability for unrecognized tax benefits.

The Company is no longer subject to examinations by income tax authorities in most jurisdictions for years prior to 2009.