Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income taxes

12. Income taxes

As of December 31, 2011, the Company had federal net operating loss carry-forwards available to reduce taxable income of approximately $64,491. The net operating loss carry-forwards expire between 2011 and 2030. The Company also had federal research and investment tax credit carry-forwards of approximately $128 that expire at various dates through 2012. The Company also has state net operating loss carry-forwards available to reduce taxable income of approximately $31,200. The net operating loss carry-forwards expire between 2013 through 2030.

Deferred tax assets and liabilities at December 31, consist of the following:

Deferred tax assets:	2011	2010
Net operating loss carry-forwards	$   25,796	$   25,373
Credit carry-forwards	128	165
Deferred income	514	456
Intangibles	839	1,175
Other, net	120	210
Total deferred tax assets	27,397	27,379
Valuation allowance	(27,397)	(27,379)
Net deferred tax assets	$         -	$         -

Income tax benefit differs from the expected statutory rate as follows:

	2011	2010
Expected federal income tax benefit	$   (1,150)	$   (1,414)
State income tax benefit	(299)	(250)
Other	(248)	(548)
Change in valuation allowance	1,697	2,212
Income tax benefit	$         -	$         -

A full valuation allowance has been established for the Company's net deferred tax assets since the realization of such assets through the generation of future taxable income is uncertain.

Under the Tax Reform Act of 1986, the amounts of, and the benefit from, net operating losses and tax credit carry-forwards may be impaired or limited in certain circumstances. These circumstances include, but are not limited to, a cumulative stock ownership change of greater than 50%, as defined, over a three-year period. During 1997, the Company experienced stock ownership changes which could limit the utilization of its net operating loss and research and investment tax credit carry-forwards in future periods. In addition, a study of recent transactions has not been preformed to determine whether any further limitations might apply.