Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income tax disclosure

11. Income taxes:

As of December 31, 2013, the Company had federal net operating loss carry-forwards available to reduce taxable income of approximately $68,449. The net operating loss carry-forwards expire between 2017 and 2033. The Company also had federal research and investment tax credit carry-forwards of approximately $136 that expire at various dates through 2017. The Company also has state net operating loss carry-forwards available to reduce taxable income of approximately $33,048. The net state operating loss carry-forwards expire between 2015 through 2033.

Deferred tax assets and liabilities at December 31, consist of the following:

Deferred tax assets:	2013	2012
Net operating loss carry-forwards	$ 27,266	$ 28,243
Credit carry-forwards	137	165
Deferred income	224	399
Intangibles	1,046	484
Other, net	373	74
Total deferred tax assets	29,046	29,365
Valuation allowance	(29,046)	(29,365)
Net deferred tax assets	$ -	$ -

Income tax benefit differs from the expected statutory rate as follows:

	2013	2012
Expected federal income tax benefit	$ (2,668)	$ (1,534)
State income tax benefit	(458)	(195)
Prior year true up to return	1,416	-
Non-deductible tax expense	1,711	-
Other	(320)	(239)
Change in valuation allowance	319	1,968
Income tax benefit	$ -	$ -

A full valuation allowance has been established for the Company's net deferred tax assets since the realization of such assets through the generation of future taxable income is uncertain.

Under the Tax Reform Act of 1986, the amounts of, and the benefit from, net operating losses and tax credit carry-forwards may be impaired or limited in certain circumstances. These circumstances include, but are not limited to, a cumulative stock ownership change of greater than 50%, as defined, over a three-year period. During 1997, the Company experienced stock ownership changes which could limit the utilization of its net operating loss and research and investment tax credit carry-forwards in future periods. In addition, a study of recent transactions has not been performed to determine whether any further limitations might apply.