INCOME TAXES

6 Months Ended

Jun. 30, 2011

INCOME TAXES [Abstract]

INCOME TAXES

7. INCOME TAXES

During 2008, the Company recorded a valuation allowance against certain deferred tax assets. Due to continued uncertainty over sufficient future taxable income to fully utilize these deferred tax assets, the Company did not record an income tax benefit for the losses incurred during the three and six months ended June 30, 2011. In addition, due to the full valuation allowance on operating loss carryforwards recorded in prior years, the Company also did not recognize an income tax expense associated with pretax income during the three and six months ended June 30, 2010. Until such time that the uncertainty is overcome, the Company does not expect to recognize income tax expense or benefit for operating income or loss, respectively, in future periods.

The Company recognized approximately $13,000 and $18,000 of income tax expense for the three months ended June 30, 2011 and 2010, respectively, and approximately $35,000 of income tax expense for the six months ended June 30, 2011 for estimated tax, penalties, and interest associated with uncertain tax positions. A net income tax benefit of approximately $112,000 was recognized for the six months ended June 30, 2010, consisting of an approximate $143,000 income tax benefit comprising a $102,000 reduction of a deferred tax asset valuation allowance to offset liabilities associated with an uncertain tax position and a $41,000 reduction of the liability for the same uncertain tax position, offset in part by approximately $31,000 in income tax expense for estimated tax, penalties, and interest associated with uncertain tax positions.