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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Components of deferred income tax assets and liabilities
                 
    2012     2011  

Deferred income tax assets:

               

Net operating loss carryforward

  $ 46,531     $ 634,802  

Deferred warranty revenue

    1,759,130       1,674,984  

Inventory reserve

    905,892       1,712,978  

Non-qualified and Non-employee stock option expense

    3,682,049       2,842,811  

Capitalized research and development

    8,191,276       9,677,167  

Alternative minimum tax carryforward

    1,406,045       1,657,287  

Research and development tax credit carryforward

    2,936,418       5,088,136  

Impairment Loss

    230,415       902,675  

Deferred Legal Settlement

    722,793       1,277,323  

Reserves, accruals, and other

    1,925,307       1,905,311  
   

 

 

   

 

 

 

Total deferred income tax assets

    21,805,856       27,373,474  
   

 

 

   

 

 

 

Deferred income tax liabilities:

               

Depreciation

    (662,172     (3,133,145

Amortization

    (141,885     (126,659
   

 

 

   

 

 

 

Total deferred income tax liabilities

    (804,057     (3,259,804
   

 

 

   

 

 

 

Net deferred income tax assets before valuation allowance

    21,001,799       24,113,670  

Less: Valuation allowance

    —          (1,428,572
   

 

 

   

 

 

 

Net deferred income tax assets

  $ 21,001,799     $ 22,685,098  
   

 

 

   

 

 

 
Net deferred tax assets
                 
    2012     2011  

Current deferred tax assets, net

  $ 9,395,987     $ 9,968,929  

Long-term deferred tax assets, net

    11,605,812       12,716,169  
   

 

 

   

 

 

 

Total

  $ 21,001,799     $ 22,685,098  
   

 

 

   

 

 

 
Significant components of the provision (benefit) for income taxes
                         
    2012     2011     2010  

Current:

                       

Federal

  $ 384,123     $ 133,220     $ 270,437  

State

    172,739       59,428       71,494  
   

 

 

   

 

 

   

 

 

 

Total current

    556,862       192,648       341,931  
   

 

 

   

 

 

   

 

 

 

Deferred:

                       

Federal

    7,778,464       (3,252,769     (939,803

State

    (1,382,203     770,687       (148,574
   

 

 

   

 

 

   

 

 

 

Total deferred

    6,396,261       (2,482,082     (1,088,377
   

 

 

   

 

 

   

 

 

 

Tax provision (benefit) recorded as an increase (decrease)in liability for unrecorded tax benefits

    920,497       (299,441     17,061  
   

 

 

   

 

 

   

 

 

 

Provision (benefit) for income taxes

  $ 7,873,620     $ (2,588,875   $ (729,385
   

 

 

   

 

 

   

 

 

 
Reconciliation of the Company's effective income tax rate to the federal statutory rate
                         
    2012     2011     2010  

Federal income tax at the statutory rate

  $ 7,913,977     $ (3,370,059   $ (1,789,837

State income taxes, net of federal benefit

    968,902       (357,226     (103,651

Permanent differences (i)

    330,216       680,742       870,757  

Research and development

    (327,256     (229,694     (163,883

Return to provision adjustment (ii)

    (270,134     (458,172     265,028  

Change in liability for unrecognized tax benefits

    920,497       (299,441     17,061  

Change in valuation allowance

    (1,428,572     1,428,572       —     

Other

    (234,010     16,403       175,140  
   

 

 

   

 

 

   

 

 

 

Provision (benefit) for income taxes

  $ 7,873,620     $ (2,588,875   $ (729,385
   

 

 

   

 

 

   

 

 

 

Effective tax rate

    34.8     26.9     14.3

 

(i) Permanent differences include certain expenses that are not deductible for tax purposes including lobbying fees and stock-based compensation expense related to incentive stock options (“ISOs”).
(ii) The 2010 return to provision adjustment was driven by lower than estimated 2009 R&D credits, which reduced the net tax benefit and therefore, the effective tax rate. The 2011 return to provision adjustment was driven by higher than estimated 2010 R&D tax credits, which increased the net tax benefit and therefore, the effective tax rate. The 2012 return to provision adjustment was driven by higher than estimated 2011 R&D tax credits which increased the net tax benefit and therefore, reduced the effective tax rate.
Roll forward of liability for unrecognized tax benefits
                         
    2012     2011     2010  

Balance, beginning of period

  $ 1,982,399     $ 2,281,840     $ 2,264,779  

Increase in previous year tax positions

    659,341       —          —     

Increase in current year tax positions

    151,041       83,298       58,830  

Increase (decrease) related to adjustment of previous estimates of activity

    110,115       (382,739     (41,769
   

 

 

   

 

 

   

 

 

 

Balance, end of period

  $ 2,902,896     $ 1,982,399     $ 2,281,840