Note 15 - Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Text Block]

Note 15—Income Taxes

The Company did not provide a current or deferred U.S. federal, state, or foreign income tax provision or benefit for any of the periods presented because it has experienced recurring operating losses. The Company has provided a full valuation allowance on the deferred tax assets, consisting primarily of the net operating losses, because evidence does not indicate that the deferred tax assets will more likely than not be realized.

At December 31, 2012, the Company had net operating loss carryforwards of approximately $130,867,000 related to U.S. federal and state jurisdictions. Utilization of the net operating loss carryforwards, which expire at various times starting in 2013 through 2032, may be subject to certain limitations under Section 382 of the Internal Revenue Code, as amended, and other limitations under state and foreign tax laws. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for unrecognized tax benefits. As of December 31, 2012, tax years 2009, 2010, and 2011 remain open for IRS audit. The Company has received no notice of audit from the Internal Revenue Service for any of the open tax years.

Actual income tax expense differs from the amount calculated using the Federal statutory tax rate of 34% as follows:

	2012			2011			2010
U.S. federal income tax at statutory rate	$	(3,505,000	)	$	(4,340,000	)	$	(2,261,000	)
Nondeductible expenses		69,000			113,000			2,000
Exercise and forfeitures of stock based compensation		(383,000	)		(1,298,000	)		(290,000	)
Change in valuation allowance		2,869,000			5,261,000			2,919,000
State tax benefit, net of federal provision (benefit)		(428,000	)		(677,000	)		(383,000	)
Foreign subsidiary loss		673,000			419,000			14,000
Adjustment for business combinations		704,000			522,000			-
Other		1,000			-			(1,000	)
Income Tax Expense	$	-		$	-		$	-

Significant components of the Company's deferred tax assets (liabilities) are approximately as follows:

	December 31, 2012			December 31, 2011
Net operating loss	$	50,515,000		$	48,820,000
Property and equipment		(2,447,000	)		(2,999,000	)
Stock options and warrants		7,960,000			7,916,000
Other		1,269,000			691,000
Total deferred tax assets		57,297,000			54,428,000
Valuation allowance		(57,297,000	)		(54,428,000	)
Net deferred tax assets	$	-		$	-