19. Income taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Note 19 - Income taxes

Significant components of the Company's deferred tax assets for federal income taxes consisted of the following:

	December 31, 2012
Net operating loss carryforward	$	18,050,294
Amortization		(580,145	)
Stock option compensation		904,334
Deferred compensation		883,794
Deferred state tax		(477,307	)
Other		449,209
Valuation allowance		(19,230,179	)
Net deferred tax asset	$	–

The Company had net operating loss carry-forwards (“NOL”) for federal and state income tax purposes of approximately:

	December 31,
	2012		2011
Combined NOL Carryforwards:
Federal	$	43,181,944	$	35,361,835
California		40,714,060		32,893,951

The net operating loss carry-forwards for 2012 and 2011 begin expiring in 2021 and 2020, respectively. The utilization of net operating loss carry-forwards may be limited due to the ownership change under the provisions of Internal Revenue Code Section 382 and similar state provisions. The Company recorded a 100% valuation allowance on the deferred tax assets at December 31, 2011 and 2010 because of the uncertainty of their realization.

A reconciliation of the income tax credit computed at the federal statutory rate to that recorded in the financial statements for 2011 and 2010 is as follows

	December 31, 2012						December 31, 2011
Rate reconciliation:
Federal credit at statutory rate	$	(4,846,180	)	$	166.75%		$	(5,415,468	)	$	258.71%
State tax, net of Federal benefit		(782,767	)		26.93%			(926,363	)		44.25%
Change in valuation allowance		5,495,845			(189.11%	)		6,338,928			(302.82%	)
Other		133,102			(4.58%	)		2,903			(0.14%	)
Total provision	$	–			–%		$	–		$	–%