Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 3 Months Ended
Mar. 31, 2013
Income Taxes [Abstract]  
Income Taxes

15. Income Taxes

No provision for Federal and State income taxes was required for the three months ended March 31, 2013 and 2012 due to the Company’s operating losses and increased deferred tax asset valuation allowance.  At March 31, 2013 and December 31, 2012, the Company has unused net operating loss carry-forwards of approximately $63,280,000 and $61,780,000 which expire at various dates through 2033.  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 March 31, 2013 and December 31, 2012, 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

December 31,

 

 

2013

2012

 

 

 

 

 

 

Net Operating Loss Carryforwards

 

$
24,679,200 

 
24,094,200 

Stock Option Expense

 

 
1,988,000 

 
1,843,000 

Book tax differences on assets and liabilities

 

 
344,700 

 
352,500 

Valuation Allowance

 

 
(27,011,900)

 
(26,289,700)

 

 

 

 

 

 

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 2013 are open and potentially subject to examination by the Federal and Maryland state taxing authorities.