Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Provision for Income Taxes

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

	2012									2011
				State								State
				And								And
	Federal			Local			Total			Federal		Local		Total
Current	$	-		$	-		$	-		$	-	$	-	$	-
Deferred		(14,000	)		(2,000	)		(16,000	)		-		-		-
Total tax (benefit) expense	$	(14,000	)	$	(2,000	)	$	(16,000	)	$	0	$	0	$	0

The components of deferred tax (benefit) expense are as follows:

	2012			2011
Decrease to the beginning of the year valuation allowance for deferred tax assets	$	(100,000	)	$	-
Increase in deferred tax liability		84,000			-
	$	(16,000	)	$	-

Reconciliation of Provision for Income Taxes Computed at Federal Statutory Rate

A reconciliation of the provision for income taxes computed at the Federal statutory rate to the reported provision for income taxes follows:

	2012			2011
Tax provision at Federal statutory rate		34.00	%		34.00	%
State income tax, net of federal benefit		6.00	%		6.00	%
Change in valuation allowance for deferred tax assets		(44.40	)%		(44.51	)%
Permanent differences		1.86	%		4.51	%
Total		(2.54	)%		0.00	%

Significant Portions of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2012 and 2011 are presented below.

	2012			2011
Non-current Deferred Tax Assets:
Federal net operating loss carryforwards	$	8,203,400		$	8,224,501
State net operating loss carryforwards		319,220			315,053
Allowance for doubtful accounts		265,286			334,639
Additional costs inventoried for tax purposes		415,005			456,616
Alternative Minimum Tax Credit Carryforward		49,436			49,436
Compensation		53,412			53,412
Rent		82,860			89,139
Goodwill and intangible assets		129,066			144,960
Depreciation		91,713			148,150
Non-current Deferred Tax Assets		9,609,398			9,815,905
Less Valuation Allowance		(9,509,398	)		(9,815,905	)
Net Deferred Tax Assets	$	100,000		$	0
Goodwill		(496,000	)		(412,000	)
Deferred Tax Liabilities	$	(496,000	)	$	(412,000	)

Schedule of Net Operating Loss Carryforwards for Federal Income Tax Purposes

As of December 31, 2012, the Company's pre-tax net operating loss carryforwards available for federal income tax purposes were approximately $26,371,000. Various amounts of net operating loss carryforwards will expire from 2020 through 2032.

Expiration Year	Net Operating Losses
2020	$	5,960,000
2021		2,737,000
2022		14,532,000
2028		1,010,000
2029		1,878,000
2030		134,000
2031		16,000
2032		104,000
	$	26,371,000