2.4.0.8000120 - Disclosure - Income Taxestruefalsefalse1false falsefalseD120401_130331http://www.sec.gov/CIK0001011060duration2012-04-01T00:00:002013-03-31T00:00:001true 1us-gaap_DisclosureTextBlockAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Notes2false 2us-gaap_IncomeTaxDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<p style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;margin-left:10.0pt;text-indent:-10.0pt;font-weight:bold;margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-align:justify;text-indent:0in'>G.      Income Taxes As of March 31, 2013 and 2012, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required. The Company may, from time to time, be assessed interest or penalties by major tax jurisdictions.  The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.  No interest and penalties have been recognized by the Company to date. Tax years 2009 through 2013 are subject to examination by the federal and state taxing authorities.  There are no income tax examinations currently in process. Reconciliation between the Companys effective tax rate and the United States statutory rate is as follows:   <table border="0" cellspacing="0" cellpadding="0" width="457" style='width:343.0pt;margin-left:23.2pt;border-collapse:collapse'> <tr style='height:26.3pt'> <td width="279" height="35" valign="bottom" style='width:209.0pt;padding:.7pt .7pt 0in .7pt;height:26.3pt'></td> <td width="89" height="35" valign="bottom" style='width:67.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt;height:26.3pt'> Year Ended March 31, 2013 </td> <td width="89" height="35" valign="bottom" style='width:67.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt;height:26.3pt'> Year Ended March 31, 2012 </td> </tr> <tr style='height:.3in'> <td width="279" height="29" valign="bottom" style='width:209.0pt;padding:.7pt .7pt 0in .7pt;height:.3in'> Expected federal tax rate </td> <td height="29" valign="bottom" style='padding:.7pt .7pt 0in .7pt;height:.3in'> 34.0% </td> <td height="29" valign="bottom" style='padding:.7pt .7pt 0in .7pt;height:.3in'> 34.0% </td> </tr> <tr align="left"> <td width="279" valign="bottom" style='width:209.0pt;padding:.7pt .7pt 0in .7pt'> State income taxes, net of federal tax benefit </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 5.5% </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> -9.8% </td> </tr> <tr align="left"> <td width="279" valign="bottom" style='width:209.0pt;padding:.7pt .7pt 0in .7pt'> Non-deductible expenses </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> -6.7% </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> -1.0% </td> </tr> <tr align="left"> <td width="279" valign="bottom" style='width:209.0pt;padding:.7pt .7pt 0in .7pt'> Federal R&D tax credits, net </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 0.4% </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 0.8% </td> </tr> <tr align="left"> <td width="279" valign="bottom" style='width:209.0pt;padding:.7pt .7pt 0in .7pt'> Expired federal operating loss carry forward </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 0.0% </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 0.0% </td> </tr> <tr align="left"> <td width="279" valign="bottom" style='width:209.0pt;padding:.7pt .7pt 0in .7pt'> Adjustment of prior year excess tax benefit </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> -11.5% </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> -12.2% </td> </tr> <tr align="left"> <td width="279" valign="bottom" style='width:209.0pt;padding:.7pt .7pt 0in .7pt'> Change in valuation allowance </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> -21.7% </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> -11.8% </td> </tr> <tr align="left"> <td width="279" valign="bottom" style='width:209.0pt;padding:.7pt .7pt 0in 6.1pt'>   </td> <td valign="bottom" style='border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:.7pt .7pt 0in .7pt'> 0.0% </td> <td valign="bottom" style='border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:.7pt .7pt 0in .7pt'> 0.0% </td> </tr> </table>   Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the tax basis of the assets and liabilities using the enacted tax rate in effect in the years in which the differences are expected to reverse.  A valuation allowance has been recorded against the deferred tax asset as it is more likely than not, based upon the analysis by the Company of all available evidence, that the tax benefit of the deferred tax asset will not be realized. The following is a summary of the significant components of the Companys deferred tax assets as of March 31, 2013 and 2012:   <table border="0" cellspacing="0" cellpadding="0" width="480" style='width:359.8pt;margin-left:18.7pt;border-collapse:collapse'> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'> (in thousands) </td> <td valign="bottom" style='border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'> March 31, 2013 </td> <td valign="bottom" style='border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'> March 31, 2012 </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in .7pt'> Deferred Tax Assets: </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'></td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'></td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in 6.1pt'> Net operating loss carryforwards </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> $9,261 </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> $8,976 </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in 6.1pt'> Capital loss carry forward </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 3,576 </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 3,576 </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in 6.1pt'> Tax credit carry forward </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 270 </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 258 </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in 6.1pt'> Inventory and receivable allowances </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 66 </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 88 </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in 6.1pt'> Accrued expenses deductible when paid </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 71 </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 70 </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in 12.25pt'> Deferred tax assets </td> <td valign="bottom" style='border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'> 13,244 </td> <td valign="bottom" style='border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'> 12,968 </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in .7pt'> Deferred Tax Liabilities: </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'></td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'></td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in 6.1pt'> Depreciation and amortization </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> (150) </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> (203) </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in 12.25pt'> Deferred tax liabilities </td> <td valign="bottom" style='border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:.7pt .7pt 0in .7pt'> (150) </td> <td valign="bottom" style='border-top:solid windowtext 1.0pt;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;padding:.7pt .7pt 0in .7pt'> (203) </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in .7pt'> Net deferred tax assets </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 13,094 </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 12,765 </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in .7pt'> Valuation allowance </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> (13,094) </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> (12,765) </td> </tr> <tr align="left"> <td width="315" valign="bottom" style='width:236.0pt;padding:.7pt .7pt 0in 6.1pt'> Net deferred tax assets </td> <td valign="bottom" style='border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:.7pt .7pt 0in .7pt'> $- </td> <td valign="bottom" style='border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;padding:.7pt .7pt 0in .7pt'> $- </td> </tr> </table>   A valuation allowance has been recorded to offset all deferred tax assets due to uncertainty of realizing the tax benefits of the underlying operating loss and tax credit carry forwards over their carry forward periods.  The Company had no significant deferred tax liabilities as of March 31, 2013 and 2012. As of March 31, 2013, the Company has the following unused net operating loss and tax credit carryforwards available to offset future federal and state taxable income, both of which expire at various times as noted below:   <table border="0" cellspacing="0" cellpadding="0" width="533" style='width:400.0pt;margin-left:18.7pt;border-collapse:collapse'> <tr align="left"> <td width="285" valign="bottom" style='width:214.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'></td> <td width="75" valign="bottom" style='width:56.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'> Net Operating Losses </td> <td width="75" valign="bottom" style='width:56.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'> Investment & Research Credits </td> <td width="99" valign="bottom" style='width:74.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:.7pt .7pt 0in .7pt'> Expiration Dates </td> </tr> <tr align="left"> <td width="285" valign="bottom" style='width:214.0pt;padding:.7pt .7pt 0in .7pt'> Federal </td> <td valign="bottom" style='border:none;border-bottom:double windowtext 2.25pt;padding:.7pt .7pt 0in .7pt'> $26,094 </td> <td valign="bottom" style='border:none;border-bottom:double windowtext 2.25pt;padding:.7pt .7pt 0in .7pt'> $123 </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 2014 to 2033 </td> </tr> <tr align="left"> <td width="285" valign="bottom" style='width:214.0pt;padding:.7pt .7pt 0in .7pt'> State </td> <td valign="bottom" style='border:none;border-bottom:double windowtext 2.25pt;padding:.7pt .7pt 0in .7pt'> $10,313 </td> <td valign="bottom" style='border:none;border-bottom:double windowtext 2.25pt;padding:.7pt .7pt 0in .7pt'> $223 </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 2014 to 2018 </td> </tr> <tr align="left"> <td width="285" valign="bottom" style='width:214.0pt;padding:.7pt .7pt 0in .7pt'> Capital loss carryforward </td> <td valign="bottom" style='border:none;border-bottom:double windowtext 2.25pt;padding:.7pt .7pt 0in .7pt'> $9,065 </td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'></td> <td valign="bottom" style='padding:.7pt .7pt 0in .7pt'> 2015 to 2016 </td> </tr> </table>   The Companys net operating loss carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. Approximately $1,400,000 of the above Federal net operating loss carryforwards relate to stock compensation.  The related tax benefit of approximately $553,000 will be credited to additional paid-in capital upon realization.falsefalsefalsenonnum:textBlockItemTypenaThe 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. false0Income TaxesfalseIncome TaxesUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.advbiomaterials.com/20130331/role/idr_DisclosureIncomeTaxes12