Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income tax disclosure

12. Income taxes:

As of December 31, 2012, the Company had federal net operating loss carry-forwards available to reduce taxable income of approximately $64,182. The net operating loss carry-forwards expire between 2016 and 2032. The Company also had federal research and investment tax credit carry-forwards of approximately $165 that expire at various dates through 2017. 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 2016 through 2031.

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

Deferred tax assets:	2012	2011
Net operating loss carry-forwards	$ 28,243	$ 25,796
Credit carry-forwards	165	128
Deferred income	399	514
Intangibles	484	839
Other, net	74	120
Total deferred tax assets	29,365	27,397
Valuation allowance	(29,365)	(27,379)
Net deferred tax assets	$ -	$ -

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

	2012	2011
Expected federal income tax benefit	$ (1,534)	$ (1,150)
State income tax benefit	(195)	(299)
Other	(239)	(248)
Change in valuation allowance	1,968	1,697
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 performed to determine whether any further limitations might apply.