Income Taxes (Notes)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The Company recorded a net income tax benefit of $3 thousand and a net provision of $24 thousand for the years ended December 31, 2012 and 2011, respectively. The Company recorded a tax benefit on the loss from continuing operations of $2.0 million and $890 thousand for the years ended December 31, 2012 and 2011, respectively, which was offset by a provision on the income from discontinued operations of $1.9 million and $914 thousand for the years ended December 31, 2012 and 2011, respectively. The discontinued operations is associated with the sale of the Company's Semiconductor Business Unit and Medical Products Business Unit. See Note 17 to the consolidated financial statements.

The reconciliation between the amount computed by applying the United States federal statutory tax rate of 34% to pretax income (loss) and the actual benefit (provision) for income taxes follows:

(in thousands)	2012			2011
Income tax benefit – continuing operations at statutory rate	$	2,289		$	1,258
Increase in valuation allowance related to income tax expense	(461		)	(600		)
State income tax benefit	211			363
Permanent differences	(88		)	(131		)
Income tax benefit – continuing operations	1,951			890
Income tax provision – discontinued operations at statutory rate	(1,656		)	(777		)
State income taxes – discontinued operations	(292		)	(137		)
Income tax provision – discontinued operations	(1,948		)	(914		)
Total income tax benefit (provision)	$	3		$	(24	)

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows:

(in thousands)	2012			2011
Deferred tax assets:
Accruals	$	1,992		$	2,028
Inventories	365			377
Net operating loss carryforwards	4,705			4,822
General business credit carryforwards	403			404
Alternative minimum tax credit carryforwards	268			268
Foreign tax credit	38			38
Total gross deferred tax assets	7,771			7,937
Prepaid expenses	(251		)	(294		)
Depreciation	130			(440		)
Amortization	(79		)	(131		)
Total gross deferred tax liabilities	(200		)	(865		)
Valuation allowance	(7,571		)	(7,072		)
Net deferred tax assets	$	—		$	—

The net change in the total valuation allowance for the period ended December 31, 2012 was an increase of $499 thousand.Federal and state net operating loss carryforwards were approximately $13.9 million and $8.6 million, respectively, as of December 31, 2012. The federal net operating loss carryforwards will expire at various times starting in 2026 through 2032, if not utilized.  The state net operating loss carryforwards will expire at various times starting in 2013 through 2032, if not utilized. Included in the Federal net operating loss carryforwards were approximately $3.5 million attributable to equity based compensation transactions. Approximately $1.0 million of the valuation allowance will be relieved through equity if these deductions for equity based transactions are realized.  Under Section 382 of the Internal Revenue Code, certain substantial changes in the Company’s ownership may limit the amount of net operating loss carryforwards that can be utilized in any one year to offset future taxable income. 

The tax years of 2009 through 2012 remain open to examination by major taxing jurisdictions to which the Company is subject. In addition, because the Company has net operating loss carryforwards for the years ended December 31, 2004 through December 31, 2007, the Internal Revenue Service and the state taxing authorities are permitted to audit those earlier years and propose adjustments up to the amount of net operating loss generated. The Company is currently not under examination by the Internal Revenue Service or any other jurisdiction for any tax years. At December 31, 2012, the Company does not have any uncertain tax positions, unrecognized tax benefits and did not recognize any interest or penalties.  The Company does not expect there to be a change in unrecognized tax benefits over the next twelve months.