PROVISION FOR INCOME TAXES

9 Months Ended

Sep. 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 nine month period ended September 30, 2013, the provision for income taxes was $1.8 million.  For the nine month period ended September 30, 2013, the valuation allowance with respect to the Company's net deferred tax assets remained unchanged.  As of September 30, 2013, our remaining deferred tax assets were approximately $1.5 million.

For the nine month period ended September 30, 2012 net income tax expense was $1.2 million, primarily a non-cash charge.  For the nine month period ended September 30, 2012, the valuation allowance with respect to the company's net deferred tax assets remained unchanged.  Our remaining deferred tax assets decreased by $0.6 million to approximately $2.4 million, primarily because we used our Orphan Drug Tax Credit to reduce our taxes payable, during nine months ended September 30, 2012.