Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Reconciliation between The Federal Statutory Tax Rate and Effective Tax Rate

The reconciliation between the federal statutory tax rate of 34% and the Company's effective tax rate is as follows:

		Years Ended December 31,
		2012	2011	2010

Statutory federal tax rate		34%	34%	34%
Permanent items		-	(4%)	(9%)
State income taxes, net of federal benefit		4%	3%	1%
Research and development credit		1%	5%	-
Expired net operating loss carryforwards		(15%)	(10%)	-
Alternative minimum tax		-	-	1%
Change in valuation allowance		(22%)	(27%)	(28%)
Other		(2%)	(1%)	-

	Effective tax rate	0%	0%	(1)%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are determined based on the difference between financial statement and tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. The components of the deferred tax assets and liabilities consist of the following:

			As of December 31,
			2012		2011
				(in thousands)
Deferred tax assets:
	Net operating loss carryforwards		$128,257		$119,719
	General business credits		10,501		10,324
	Alternative Minimum Tax (AMT) credit		418		418
	Other		3,007		1,791
		Gross deferred tax assets	$142,183		$132,252

Deferred tax liabilities:
	In-process research and development		$(22,093)		$(22,093)
	Other		-		(170)
		Deferred tax liabilities	$(22,093)		$(22,263)

		Net deferred tax assets	$120,090		$109,989
	Valuation Allowance		(120,090)		(109,989)

		Net deferred tax assets	$-		$-