INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consists of the following:

Year ended December 31,

		2012		2011			2010
Current taxes:
Federal	$	686,968	$	-		$	-
State		12,182		3,525			1,351
Total current taxes		699,150		3,525			1,351
Deferred taxes:
Federal		1,134,532		(1,219,190	)		-
State		340,372		(122,593	)		-
Total deferred taxes		1,474,904		(1,341,783	)		-
Total provision for income taxes	$	2,174,054	$	(1,338,258	)	$	1,351

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate of the Company differs from the federal statutory tax rate of 34% due to the following items:

Year ended December 31,

	2012			2011			2010
Statutory rate		34.00	%		34.0	%		34.0	%
State income taxes, net of federal income tax benefit		0.16	%		7.1	%		5.0	%
Stock-based compensation		1.51	%		4.0	%		(42.8	)%
Change in effective state tax rate		6.59	%		-			-
Other, net		(0.08	)%		(5.9	)%		21.4	%
Increase (decrease) in valuation allowance		-			(64.6	)%		(17.6	)%
Effective tax rate (benefit)		42.18	%		(25.4	%)		-

Schedule of Deferred Tax Asset

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred income tax assets and liabilities are as follows:

Year ended December 31,

	2012		2011		2010

Tax credit carry forward	$	-	$	1,027,633	$	1,027,633
Deferred revenues		132,514		293,297		466,981
Other		27,322		17,253		-
Options		1,413,214		1,687,780		1,757,303
Net operating loss carry forward		-		21,992		350,617
Net deferred tax assets before valuation allowance		1,573,050		3,047,955		3,602,534
Valuation allowance		-		-		(3,602,534	)
Net deferred tax asset	$	1,573,050	$	3,047,955	$	-