INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets (liabilities) are comprised of the following (in thousands):

	As of December 31,
	2012			2011
United States
Net operating loss carryforwards	$	41,374		$	42,008
Gain on sale of membership interests in Nutra SA		374			374
Stock options and warrants		1,144			3,000
Intangible assets		960			577
Property		5,651			4,372
Capitalized expenses		715			1,217
Convertible debt		(399	)		-
Other		86			283
Deferred tax assets		49,905			51,831
Less: Valuation allowance		(49,905	)		(51,831	)
Net deferred tax asset		-			-
Brazil
Intangible assets		(490	)		(904	)
Property		(2,165	)		(2,927	)
Net operating loss carryforwards		960			14
Other		255			209
Net deferred tax liability		(1,440	)		(3,608	)
	$	(1,440	)	$	(3,608	)

Deferred tax asset - current	$	234		$	159
Deferred tax liability - long-term		(1,674	)		(3,767	)
	$	(1,440	)	$	(3,608	)

Income (Loss) from Continuing Operations before Income Taxes

Loss before income taxes is comprised of the following (in thousands):

	2012			2011

Foreign	$	(5,051	)	$	(2,277	)
Domestic		(8,020	)		(8,943	)
Loss before income taxes	$	(13,071	)	$	(11,220	)

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations between the amount computed by applying the U.S. federal statutory tax rate (34%) to loss before income taxes, and income tax benefit follows (in thousands):

	2012			2011

Income tax benefit at federal statutory rate	$	(4,444	)	$	(3,815	)
Increase (decrease) resulting from:
State tax benefit, net of federal tax effect		(251	)		(347	)
Change in valuation allowance		(1,926	)		1,313
Adjustment to U.S. net operating losses		-			1,694
Adjustment to capitalized costs deferred balances		443			-
Adjustment to stock option compensation deferred balances		1,602			-
Reduction in deferred balances for forfeited, expired or cancelled options		602			-
Expiration of U.S. net operating losses		1,460			115
Nontaxable fair value adjustment		(1,843	)		(113	)
Nondeductible convertible debt issuance expenses		2,285			-
Impact of state rate changes		-			437
Nondeductible expenses		10			18
Foreign taxes		6			(6	)
Adjustments to Brazil deferred balances		(222	)		429
Adjustments to U.S. deferred balances		343			(70	)
Income tax benefit	$	(1,935	)	$	(345	)