20. INCOME TAXES

The provision (benefit) for income taxes consists of the following (in thousands):

	Years ended December 31,

	2012		2011			2010
Current:
Federal	$	416	$	(254	)	$	226
State		39		69			133
Foreign		30		43			—

Total current		485		(142	)		359
Deferred:
Federal	$	—	$	—		$	—
State		—		—			—

Total deferred		—		—			—

Total provision (benefit) for income taxes	$	485	$	(142	)	$	359

The components of our deferred tax assets and liabilities as of December 31, 2012 and 2011 are as follows (in thousands):

	December 31,

	2012			2011
Deferred tax assets and liabilities:
Net operating loss carry-forwards	$	69,158		$	76,455
Temporary differences:
Accrued expenses		4,469			3,317
Reserves and other		7,464			5,705
Depreciation and amortization		(1,398	)		(1,860	)

		79,693			83,617
Valuation allowance		(79,693	)		(83,617	)

Net asset	$	—		$	—

As a result of our history of losses, a valuation allowance has been provided for the full amount of our net deferred tax assets as we believe that it is more likely than not that these benefits will not be realized. We recorded a tax provision of $485,000 for the year ended December 31, 2012, for federal alternative minimum taxes, state and foreign taxes.

At December 31, 2012 and 2011, we had U.S. federal net operating loss carry-forwards of approximately $174.1 million and $192.5 million and state net operating loss carry-forwards of approximately $151.6 million and $176.1 million, respectively, which may be used to offset future taxable income. We are currently reviewing whether we had any ownership changes. Ownership changes under IRS Code Section 382 would limit the amount of net operating losses that could be used in any annual period. Our carry-forwards begin to expire in 2018.

The income tax provision differs from the amount computed by applying the U.S. federal income tax rate of 35% to loss before income taxes for the following reasons (in thousands):

	Year ended December 31,

	2012			2011			2010
U.S. federal income tax provision (benefit) at statutory rate	$	5,303		$	(6,853	)	$	4,940
State income tax expense, net of federal benefit		44			45			86
Stock based compensation expense		1			70			484
Other		(1,764	)		30			73
Change in valuation allowance		(3,099	)		6,566			(5,224	)

Income tax provision (benefit)	$	485		$	(142	)	$	359

We are subject to audit by the IRS and various states for periods since inception. We do not believe there will be any material changes in our unrecognized tax positions over the next 12 months. Our policy is to recognize interest and penalties accrued on any unrecognized tax positions as a component of income tax expense.

A reconciliation of the beginning and ending tax contingencies, excluding interest and penalties, is as follows (in thousands):

	Year ended December 31,

	2012		2011		2010
Beginning balance	$	231	$	191	$	112
Additions for tax positions related to the current year		—		—		—
Additions for tax positions taken in prior years		—		40		79

Ending balance	$	231	$	231	$	191

The interest and penalties accrued on tax contingencies as of December 31, 2012 and 2011 were $97,000 and $82,000, respectively. Tax years beginning in 2010 are subject to examination by taxing authorities, although net operating loss and credit carry forwards from all years are subject to examinations and adjustments for at least three years following the year in which the attributes are used.