Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income Taxes

Note 12 - Income Taxes

The income tax provision reconciled to the tax computed at the statutory Federal rate follows:

	2012			2011
Tax Expense at Statutory Rate	$	(785,797	)	$	343,610
Valuation Allowance		775,621			(354,684	)
Non-Deductible Expenses and Other		10,176			11,074
State Taxes, Net of Federal Benefit		160,483			40,353
Income tax expense	$	160,483		$	40,353
Current	$	160,483		$	40,353
Deferred		-			-
Total	$	160,483		$	40,353

Deferred income taxes are comprised of the following at December 31, 2012 and 2011:

	2012			2011
Deferred tax assets (liabilities):
Inventories	$	94,640		$	94,640
Stock options and other		45,698			44,195
Alternative Minimum Tax credit carryforward		24,674			24,675
Contingencies and accruals		50,540			622,085
Property and equipment		(552,078	)		(372,276	)
Capital loss carryover		25,420			25,420
Net operating loss carryforward		9,063,107			7,536,703
Goodwill and intangibles		(22,152	)		(21,214	)
Total deferred tax assets, net		8,729,849			7,954,228
Valuation allowance	$	(8,729,849	)	$	(7,954,228	)

As of December 31, 2012, the Company had approximately $848,019 of net operating loss carry-forwards, related to the Superior Galleries acquisition which may be available to reduce taxable income in future years, subject to the applicable Internal Revenue Code Section 382 limitations. As of December 31, 2012, the Company had approximately $30,695,066 of net operating loss carry-forwards related to Superior Galleries' post acquisition operating losses and other operating losses incurred by the Company's other operations. These carry-forwards will expire, starting in 2024 if not utilized. As of December 31, 2012 and 2011, the Company determined based on consideration of all available evidence, including but not limited to historical, current and future anticipated financial results as well as applicable IRS limitation and expiration dates related to the Company's net operating losses a full valuation allowance should be recorded for its net deferred tax assets.