9. Income Taxes

At June 30, 2013, the company had federal and state net operating loss carryforwards for tax purposes of approximately $147,000,000 and $69,000,000, respectively. Approximately $5,300,000 of the federal net operating loss carryforwards are Separate Return Limitation Year (SRLY) and can only be used by the entity that generated these losses in the separate return years. Federal net operating losses expire in various years between fiscal 2019 and fiscal 2033 and state net operating losses expire in various years between fiscal 2014 and fiscal 2033. The company also has a capital loss carryforward for tax purposes of approximately $13,600,000 related to the sale of its German subsidiary which expires in fiscal 2016 and can only be applied towards capital gains.

The provision for income taxes for continuing operations differs from the amount computed by applying the federal statutory rate of 34% as follows (in thousands):


	Year Ended June 30,
	2013			2012			2011
Computed expected tax benefit	$	(3,859	)	$	(2,840	)	$	(2,307	)
Benefit attributable to net operating loss and tax credit carryforwards and other deductible temporary differences not recognized		3,859			2,840			2,307

Income tax expense	$	—		$	—		$	—

The components of deferred tax assets and liabilities consist of the following (in thousands):


	June 30,
	2013			2012
Deferred tax asset:
Intangible assets	$	768		$	779
Deferred compensation		596			588
Accrued expenses and other		300			328
Net operating loss and tax credit carryforwards		63,635			60,473

Total gross deferred tax assets		65,299			62,168
Less: Valuation allowance		(65,299	)		(62,168	)

Net deferred tax assets	$	—		$	—

The company has recorded a full valuation allowance of an amount equal to its deferred tax assets since it believes it is more likely than not that such deferred tax assets will not be realized. The net change in the total valuation allowance for the years ended June 30, 2013, 2012 and 2011 was an increase of approximately $3,131,000, $667,000 and $4,012,000, respectively. As of June 30, 2013, the company has not recorded any unrecognized tax benefits, which remains unchanged from previous years. The company’s tax years June 2009 through June 2013 remain open to examination for most U.S. taxing authorities.