Annual report pursuant to Section 13 and 15(d)

Income Taxes

v2.4.0.6
Income Taxes
 12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Income Taxes

14. Income Taxes

No provision for Federal and State income taxes was required for the years ended December 31, 2012 and 2011 due to the Company’s operating losses and increased deferred tax asset valuation allowance.  At December 31, 2012 and 2011, the Company has unused net operating loss carry-forwards of approximately $61,780,000 and $55,394,000 which expire at various dates through 2032.  Some of this amount may be subject to annual limitations under certain provisions of the Internal Revenue Code related to “changes in ownership.” 

As of December 31, 2012 and 2011, the deferred tax assets related to the aforementioned carry-forwards have been fully offset by valuation allowances, since significant utilization of such amounts is not presently expected in the foreseeable future. 

 

Deferred tax assets and valuation allowances consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

December 31,

 

 

2012

2011

 

 

 

 

 

 

Net Operating Loss Carryforwards

 

$
24,094,200 

$
21,603,700 

Stock Option Expense

 

 
1,843,000 

 
1,753,400 

Book tax differences on assets and liabilities

 

 
352,500 

 
348,600 

Valuation Allowance

 

 
(26,289,700)

 
(23,705,700)

 

 

 

 

 

 

Net Deferred Tax Assets

 

$

 -

$

 -

 

The Company files income tax returns in the U.S. Federal and Maryland state jurisdictions.  Tax years for fiscal 2009 through 2012 are open and potentially subject to examination by the Federal and Maryland state taxing authorities.