Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes

Income Taxes

7. Income Taxes

We have incurred operating losses since inception. For the three and six months ended June 30, 2011, there was an income tax provision of $153 and $342, respectively, resulting from recognition of a deferred tax liability related to tax deductible goodwill. There was no income tax provision (benefit) for prior periods.

Section 382 of the U.S. Internal Revenue Code imposes an annual limitation on the amount of net operating loss carryforwards that might be used to offset taxable income when a corporation has undergone significant changes in stock ownership. We believe that an annual limit will be imposed by Section 382, however we expect to fully utilize our net operating loss carryforwards during their respective carryforward periods.