E - INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income tax expense (benefit) provision

Income tax expense consists of the following:

	Year Ended December 31,
	2013		2012		2011
Federal income tax expense:
Current	$	19,000	$	—	$	—
Deferred		—		—		—
		19,000		—		—
State and local:
Current		—		34,000		23,000
Deferred		—		—		—
		—		34,000		23,000
Total:
Current		19,000		34,000		23,000
Deferred		—		—		—
	$	19,000	$	34,000	$	23,000

Reconciliation between income tax benefit and income taxes

Reconciliation between the income tax benefit and income taxes computed by applying the statutory Federal income tax rate to loss before income taxes is as follows:

	Year Ended December 31,
	2013			2012			2011
Expected income tax benefit at statutory Federal tax rate (34%)	$	(2,004,000	)	$	(47,000	)	$	(1,812,000	)
State and local taxes, net of Federal tax effect		(413,000	)		22,000			(406,000	)
Increase in valuation allowance		2,342,000			—			2,177,000
Permanent difference		46,000			36,000			36,000
Other		48,000			23,000			28,000
Income tax expense	$	19,000		$	34,000		$	23,000

Deferred tax assets (liabilities)

Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and their tax basis. The principal items giving rise to deferred tax assets (liabilities) are as follows:

	December 31,
	2013			2012
Deferred tax asset:
Net operating loss credit carryforwards	$	4,670,000		$	3,239,000
Alternative minimum tax carryforward		15,000			—
Employee stock based compensation		237,000			237,000
Retail brokerage accounts		281,000			362,000
Contribution carryover		347,000			345,000
Furniture, equipment and leasehold improvements		96,000			59,000
Accrued expenses		83,000			134,000
For investment in affiliate		1,001,000	(a)		—
Accrued compensation and other		44,000			179,000
		6,774,000			4,555,000
Valuation allowance		(6,774,000	)		(4,432,000	)
		—			123,000
Deferred tax liability:
Acquired intangible assets		—			(123,000	)
	$	0		$	0

(a) Attributable to non-deductible bonus accrued at December 31, 2013 by affiliate, which will be deductible in 2014.