Income Taxes

9 Months Ended

Sep. 30, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

13.        Income Taxes

In the nine months ended September 30, 2011 and 2010, we only recorded tax expense related to state franchise taxes and we did not report income tax expense due to the availability of deferred tax assets to offset any taxable income in the US and the UK.  We have established a full valuation allowance against our deferred tax assets based on an assessment that the criteria that deferred tax assets will more likely than not be realized is not yet met.  During the nine months ended September 30, 2011, our effective tax rates were de minimus.  The difference between our effective tax rates and the 35% US federal statutory tax rate and the UK's statutory tax rate resulted primarily from a tax benefit related to a reduction in the federal and state deferred tax asset valuation allowance.

Our major tax jurisdictions are (i) US (federal), (ii) California (state), (iii) New York (state) and (iv) UK.  Our tax returns remain open to examination by the applicable governmental authorities for tax years 2006 through 2010.  The federal and state taxing authorities may choose to audit tax returns for prior years due to significant tax attribute carryforwards for those prior years.  However, such audits will be limited to adjustments to such carryforward tax attributes.  We are not currently being audited in any major tax jurisdiction.