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TAXES AND NET OPERATING LOSS CARRYFORWARDS (Tables)
 12 Months Ended
Dec. 31, 2012
TAXES AND NET OPERATING LOSS CARRYFORWARDS [Abstract]  
Components of deferred tax assets (liabilities)
Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. The tax effects of these temporary differences representing the components of deferred tax assets (liabilities) at December 31 were approximately as follows (in thousands):
 
   2012  
2011
 
Deferred tax assets, current:
 
 
  
 
 
U.S. net operating loss carryforwards
 $1,097  $980 
State net operating loss carryforwards
  197   176 
Research and development credits
  774   774 
AMT credits
  73   73 
Accounts receivable
  12   16 
Reserves
  1   -- 
Inventory
  --   1 
Charitable
  9   9 
Accrued expenses
  132   56 
Accrued Settlement
  --   593 
Non-current estimate of loss and credit carryforwards
  (2,295)  (2,178)
Total deferred tax assets, current
  --   500 
          
Deferred tax assets, non-current:
        
Investment in subsidiary
  128   -- 
Loss and credit carryforwards
  2,295   2,178 
Stock based compensation
  95   70 
Total deferred tax assets, non- current
  2,518   2,248 
          
Deferred tax liabilities, non-current:
        
Inventory
  (1)  -- 
State taxes (capital)
  (4)  -- 
Property and equipment
  (361)  (422)
Intangibles
  (304)  (254)
Unrecognized tax benefit liability for non-current temporary differences
  (49)  (63)
Total deferred tax liabilities, non- current
  (719)  (739)
          
Net non-current deferred income tax asset
 $1,799  $1,509 
Reconciliation of the statutory federal income tax rate to our effective tax rate
Below is a reconciliation of the statutory federal income tax rate to our effective tax rate for the fiscal years ended December 31, 2012, 2011 and 2010:
 
   
2012
  
2011
  
2010
 
Federal Tax Provision
  34.0%  34.0%  34.0%
State taxes (net of federal benefit)
  4.1%  (32.0%)  4.3%
Stock based compensation*
  -   (27.8%)  0.5%
Research and development credits*
  -   (78.0%)  5.0%
Warrant Gains
  -   (175.9%)  - 
Meals and Entertainment
  -   39.1%  - 
Other
  (12.2%)  -   (6.1%)
    25.9%  (240.6%)  37.7%
 
* Net of IRS Exam adjustments for 2010