|9 Months Ended|
Sep. 30, 2011
No provision for Federal and State income taxes was required for the three and nine months ended September 30, 2011 and 2010 due to the Company's operating losses and increased deferred tax asset valuation allowance. At September 30, 2011 and December 31, 2010, the Company has unused net operating loss carry-forwards of approximately $53,054,000 and $46,283,000 which expire at various dates through 2031. Some of this amount may be subject to annual limitations under certain provisions of the Internal Revenue Code related to "changes in ownership." During the three months ended September 30, 2011, the Company amended prior years' tax returns to correct prior year errors, which adjusted the net operating loss carryforward.
As of September 30, 2011 and December 31, 2010, 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:
The Company files income tax returns in the U.S. Federal and Maryland state jurisdictions. Tax years for fiscal 2007 through 2010 are open and potentially subject to examination by the Federal and Maryland state taxing authorities.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef