Note 12 - Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 12—Income Taxes

The Company provides for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

For the years ended December 31, 2013 and 2012, the Company did not record a current or deferred income tax expense or benefit.

The Company's loss before taxes was $10,898,325 and $10,308,338 for the years ended December 31, 2013 and 2012, respectively, and was primarily generated in the U.S.

Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The significant components of the Company's deferred tax assets are comprised of the following:

	December 31, 2013			December 31, 2012
Net operating loss	$	48,280,000		$	50,515,000
Property and equipment		(1,525,000	)		(2,447,000	)
Stock options and warrants		9,738,000			7,960,000
Other		1,151,000			1,269,000
Total deferred tax assets		57,644,000			57,297,000
Valuation allowance		(57,644,000	)		(57,297,000	)
Net deferred tax assets	$	-		$	-

The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets. Based on the Company's history of operating losses, the Company has concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized. Accordingly, the Company has provided a full valuation allowance for deferred tax assets as of December 31, 2013 and 2012.

A reconciliation of income tax expense computed at the statutory federal income tax rate of 34% to income taxes as reflected in the financial statements is as follows:

	2013			2012
U.S. federal income tax at statutory rate	$	(3,689,000	)	$	(3,505,000	)
Nondeductible expenses		54,000			69,000
Exercise and forfeitures of stock based compensation		-			(383,000	)
Change in valuation allowance		3,708,000			2,869,000
State tax benefit, net of federal provision (benefit)		2,000			(428,000	)
Foreign subsidiary loss		(22,000	)		673,000
Adjustment for business combinations		-			704,000
Other		(53,000	)		1,000
Income Tax Expense	$	-		$	-

As of December 31, 2013 and 2012, the Company had U.S. federal net operating loss carryforwards of $136 million and $131 million, respectively, which may be available to offset future income tax liabilities and expire at various dates through 2033.

The Company will recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2013 and 2012, the Company had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in the Company's statements of operations and comprehensive income (loss).

The Company files income tax returns in the United States, and various state jurisdictions. The federal and state income tax returns are generally subject to tax examinations for the tax years ended December 31, 2010 through December 31, 2013. To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period.