Income Taxes

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Income Taxes

Due to cumulative losses incurred by the Company and its subsidiaries during the current nine month period and prior three years, the Company has concluded that it is not more likely than not that it will realize its net deferred tax asset and, accordingly, has recorded a valuation allowance to fully offset its net deferred tax asset at September 30, 2011, amounting to approximately $3,826,000, resulting in no tax benefit during the nine months ended September 30, 2011. During the three and nine months ended September 30, 2010, a deferred tax provision of $1,555,000 was recorded to set up a valuation allowance to fully offset the Company’s deferred tax asset at such date.