Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Provision for income taxes

The provision for income taxes consisted of the following:

			2012		2011
					Restated
Current expense
	Federal	$	-	$	-
	State		8,996		23,395
	Total current		8,996		23,395
Deferred expense
	Federal		-		2,689,480
	State		-		-
	Total deferred		-		2,689,480
Total income tax expense		$	8,996	$	2,712,875

Reconciliation between the provision for income taxes and income taxes computed by applying the statutory rate

Reconciliation between the provision for income taxes and income taxes computed by applying the statutory rate is as follows:

			2012		2011
					Restated
Tax provision at statutory rate of 34%		$	(1,079,718)	$	(1,252,935)
Add (deduct):
	State income taxes, net of federal taxes		14,244		15,439
	Refund of prior year state tax overpayment		(12,586)		-
	Other non-deductible		-		552
	Valuation allowance		1,087,056		3,949,819
Total income tax expense		$	8,996	$	2,712,875

The provision tax effects of temporary differences that give rise to the deferred tax assets and liabilities

The provision tax effects of temporary differences that give rise to the deferred tax assets and liabilities as of December 31 were as follows:

				2012		2011
						Restated
Current deferred tax asset
	Accrued bonus		$	2,856	$	17,085
	Valuation allowance			(2,856)		(17,085)
Total current deferred tax asset				-		-
Deferred tax assets
	Property and equipment			2,885,929		2,008,277
	Net operating loss carryforwards			1,975,820		1,761,195
	Stock options			94,399		87,680
	AMT tax credit			69,415		69,415
	State net operating loss carryforwards			41,009		41,009
	Stock grants			28,008		6,167
	Less:
		Valuation allowance		(5,094,580)		(3,973,743)
Total deferred tax asset			$	-	$	-