Income Taxes	3 Months Ended
Dec. 31, 2014
Income Taxes
Income Taxes:	3. Income Taxes The income tax benefit for the three months ended December 31, 2014 was $411,000 compared to a tax expense of $416,000 for the three months ended December 31, 2013. The effective tax rate for the three months ended December 31, 2014 was (224%). The effective tax rate for the three months ended December 31, 2014 differs from the statutory rate primarily because of the retroactive extension of the Federal Research and Development Tax Credit (“R&D Tax Credit”) and the Domestic Production Activities Deduction (“DPAD”). The retroactive extension of the R&D Tax Credit was effective January 1, 2014. The current year estimated annual effective income tax rate reflects the benefit from the R&D Tax Credit only for the three months ended December 31, 2014 as permitted by ASC Topic 740, because the R&D Tax Credit expired as of December 31, 2014. In addition, the retroactive benefit for the period from January 1, 2014 to September 30, 2014 was reflected as a discrete item which further reduced the Company’s income tax expense for the three months ended December 31, 2014. The effective tax rate for the three months ended December 31, 2013 was 29%. The effective tax benefit rate for the three months ended December 31, 2013 differs from the statutory rate primarily because of the favorable impact of the federal R&D Tax Credit and the Domestic Production Activities Deduction. The annual effective income tax rate reflected the benefit from the R&D Tax Credit for only the three months ended December 31, 2013 as permitted by ASC Topic 740, because the R&D Tax Credit expired as of December 31, 2013. At December 31, 2014, the balance of the deferred tax valuation allowance relates principally to NOL of certain state taxing jurisdictions. The Company will continue to maintain the balance of the valuation allowance until the Company generates a sufficient level of profitability in certain jurisdictions to warrant a conclusion that it no longer is more likely than not that these net state deferred tax assets will not be realized in future periods. There is currently no assurance of such future income before taxes. The Company believes that its estimate of future taxable income is inherently uncertain, and, therefore, further adjustments to the valuation allowance are possible. On September 13, 2013, the U.S. Treasury Department and the IRS issued final regulations that addressed cost incurred in acquiring, producing, or improving tangible property (the “tangible property regulations”). The tangible property regulations were generally effective for tax years beginning on or after January 1, 2014 and required the Company to make additional tax accounting method changes as of October 1, 2014. However, the impact of these changes to the Company’s consolidated financial statements was immaterial as of and for the three months ended December 31, 2014.

3. Income Taxes

The income tax benefit for the three months ended December 31, 2014 was $411,000 compared to a tax expense of $416,000 for the three months ended December 31, 2013.

The effective tax rate for the three months ended December 31, 2014 was (224%). The effective tax rate for the three months ended December 31, 2014 differs from the statutory rate primarily because of the retroactive extension of the Federal Research and Development Tax Credit (“R&D Tax Credit”) and the Domestic Production Activities Deduction (“DPAD”). The retroactive extension of the R&D Tax Credit was effective January 1, 2014. The current year estimated annual effective income tax rate reflects the benefit from the R&D Tax Credit only for the three months ended December 31, 2014 as permitted by ASC Topic 740, because the R&D Tax Credit expired as of December 31, 2014. In addition, the retroactive benefit for the period from January 1, 2014 to September 30, 2014 was reflected as a discrete item which further reduced the Company’s income tax expense for the three months ended December 31, 2014.

The effective tax rate for the three months ended December 31, 2013 was 29%. The effective tax benefit rate for the three months ended December 31, 2013 differs from the statutory rate primarily because of the favorable impact of the federal R&D Tax Credit and the Domestic Production Activities Deduction. The annual effective income tax rate reflected the benefit from the R&D Tax Credit for only the three months ended December 31, 2013 as permitted by ASC Topic 740, because the R&D Tax Credit expired as of December 31, 2013.

At December 31, 2014, the balance of the deferred tax valuation allowance relates principally to NOL of certain state taxing jurisdictions. The Company will continue to maintain the balance of the valuation allowance until the Company generates a sufficient level of profitability in certain jurisdictions to warrant a conclusion that it no longer is more likely than not that these net state deferred tax assets will not be realized in future periods. There is currently no assurance of such future income before taxes. The Company believes that its estimate of future taxable income is inherently uncertain, and, therefore, further adjustments to the valuation allowance are possible.

On September 13, 2013, the U.S. Treasury Department and the IRS issued final regulations that addressed cost incurred in acquiring, producing, or improving tangible property (the “tangible property regulations”). The tangible property regulations were generally effective for tax years beginning on or after January 1, 2014 and required the Company to make additional tax accounting method changes as of October 1, 2014. However, the impact of these changes to the Company’s consolidated financial statements was immaterial as of and for the three months ended December 31, 2014.