INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

INCOME TAXES [Abstract]

Provision for Current and Deferred Income Tax

The following table summarizes components of the provision for (benefit from) current and deferred income taxes for the years ended December 31, 2014 and 2013:

	2014			2013
	(in thousands)
Current
Federal	$	0		$	0
State and other		11			22
Total Current		11			22
Deferred
Federal		(2	)		(15	)
State and other		(1	)		(3	)
Total Deferred		(3	)		(18	)
Provision for  Income Taxes	$	8		$	4

Significant Differences Between U.S. Federal Statutory Tax Rate and Effective Tax Rate

The following table summarizes the significant differences between the U.S. Federal statutory tax rate and the Company’s effective tax rate for financial statement purposes for the years ended December 31, 2014 and 2013:

	2014			2013
U.S. Federal Statutory Tax Rate		34.0	%		34.0	%
Permanent items		14.0	%		13.0	%
State taxes		4.0	%		5.0	%
Other		(1.0	)%		0.0	%
Decrease in valuation allowance		(44.0	)%		(50.0	)%
Totals	7.0%				2.0	%

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2014 and 2013 are summarized as follows:

	2014			2013
	(in thousands)
Deferred Tax Assets
Net operating loss carryforwards	$	9,583		$	9,670
Tax credit carryforwards		347			347
Fixed and intangible assets		(17	)		43
Deferred revenue		20			0
Value of stock options and stock compensation		380			338
Deferred rent		17			9
Capital loss carryforward		517			517
Accruals		172			142
		11,019			11,066
Valuation Allowance		(9,824	)		(9,874	)
Deferred Tax Assets, Net	$	1,195		$	1,192

Change in Valuation Allowance for Deferred Tax Assets

The change in the valuation allowance for deferred tax assets for the years ended December 31, 2014 and 2013 are summarized as follows:

	2014			2013
Beginning Balance	$	9,874		$	9,957
Change in Allowance		(50	)		(83	)
Ending Balance	$	9,824		$	9,874