INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Analysis of Deferred Tax Assets (Liabilities)

An analysis of the deferred tax assets (liabilities) is as follows:

	December 31,
	2012			2011
	(in thousands)
Net operating loss carryforwards	$	85,600		$	87,270
Difference in depreciation and amortization		2,524			2,574
Capital loss carryforward		0			5
Research and development tax credits		20,012			20,740
Stock compensation		4,424			4,153
Deferred rent		265			372
Deferred revenue		1,133			1,124
Other		169			571
		114,127			116,809
Valuation allowance		(114,127	)		(116,809	)
Net deferred tax asset	$	0		$	0

Reconciliation Between Effective Tax Rate and Income Tax Rate

The reconciliation between the Company’s effective tax rate and the income tax rate is as follows:

	Year Ended December 31,
	2012			2011			2010
	(in thousands)
Federal income tax rate		34.0	%		34.0	%		34.0	%
Research and development tax credits		(0.6	)		54.6			3.9
Valuation allowance		(7.5	)		(507.4	)		(16.8	)
Permanent Differences		(25.9	)		450.0			(12.8	)
Other		(0.0	)		(31.2	)		(8.3	)
Effective tax rate		0.0	%		0.0	%		0.0	%