PROVISION FOR INCOME TAXES

6 Months Ended

Jun. 30, 2013

PROVISION FOR INCOME TAXES [Abstract]

PROVISION FOR INCOME TAXES

7. PROVISION FOR INCOME TAXES

In determining our provision for income taxes, we consider all available information, including operating results, ongoing tax planning, and forecasts of future taxable income.The significant components of the Company's deferred tax assets pursuant to Accounting Standards Codification 740-10-50 consist of stock-based compensation and deferred revenues. For the six month period ended June 30, 2013, the provision for income taxes was $1.3 million.  For the six month period ended June 30, 2013, the valuation allowance with respect to the Company’s net deferred tax assets remained unchanged.  As of June 30, 2013, our remaining deferred tax assets were approximately $1.5 million.

For the six month period ended June 30, 2012 our provision for income taxes was $0.9 million, primarily a non-cash charge.  For the six month period ended June 30, 2012, the valuation allowance with respect to the company’s net deferred tax assets remained unchanged.  Our remaining deferred tax assets decreased by $0.4 million to approximately $2.6 million, primarily because we used our Orphan Drug Tax Credit to reduce our taxes payable, during six months ended June 30, 2012.