Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v2.4.0.8
Income Taxes
 9 Months Ended
Sep. 30, 2013
Income Taxes [Abstract]  
Income Taxes

15. Income Taxes

No provision for federal and state income taxes was required for the three and nine months ended September 30, 2013 and 2012 due to the Company’s operating losses and increased deferred tax asset valuation allowance.  At September 30, 2013 and December 31, 2012, the Company had unused net operating loss carry-forwards of approximately $66,908,000 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 September 30, 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

December 31,

 

 

2013

2012

 

 

 

 

 

 

Net Operating Loss Carryforwards

 

$
26,094,100 

 
24,094,200 

Stock Option Expense

 

 
2,000,400 

 
1,843,000 

Book tax differences on assets and liabilities

 

 
346,900 

 
352,500 

Valuation Allowance

 

 
(28,441,400)

 
(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 2010 through 2013 are open and potentially subject to examination by the federal and Maryland state taxing authorities.