10.	Income Taxes

In accordance with ASC 740, Income Taxes, each interim period is considered integral to the annual period and the tax benefit (expense) is measured using an estimated annual effective tax rate. An entity is required to record income tax provision each quarter based on its best estimate of the annual effective tax rate for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, as adjusted for discrete taxable events that occur during the interim period. If, however, the entity is unable to reliably estimate its annual effective tax rate, then the actual effective tax rate for the year-to-date period may be the best annual effective tax rate estimate. For the six months ended June 30, 2014, the Company determined that it was unable to make a reliable estimate of the annual effective tax rate as relatively small changes in its projected income or loss produce significant variances in its annual effective tax rate. Therefore, the Company recorded a tax benefit in the amount of $88,000 and $25,000 for the three and six months ended June 30, 2014, respectively, based on the actual effective rate for the six months ended June 30, 2014. The effective tax rate for the three and six months ended June 30, 2013 was calculated based on an estimated annual effective tax rate resulting in an income tax expense of $131,000 and $263,000, respectively.