Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income (loss) before income tax provision for income taxes

(Loss) income before income taxes consists of the following:

Year ended December 31,	2012			2011			2010
Domestic	$	(4,980,364	)	$	15,805,107		$	(7,706,018	)
Foreign		(706,265	)		(4,270,715	)		(766,343	)
Total	$	(5,686,629	)	$	11,534,392		$	(8,472,361	)

Provision for income taxes

The provision for income taxes in the accompanying consolidated statements of operations consists of the following:

Year ended December 31,	2012			2011		2010
Federal:
Current	$	350,039		$	3,588,798	$	210,090
Deferred		-			-		-
		350,039			3,588,798		210,090
State:
Current		143,370			515,745		92,505
Deferred		-			-		-
		143,370			515,745		92,505
Foreign:
Current		(8,879	)		1,420		-
Deferred		-			-		-
		(8,879	)		1,420		-
Total	$	484,530		$	4,105,963	$	302,595

Reconciliation of federal statutory rate to effective tax rate

A reconciliation of the federal statutory rate to our effective tax rate is as follows:

Year ended December 31,	2012			2011			2010
Income tax (benefit) provision at federal statutory rate		(34.0	%)		34.0	%		(34.0	%)
Increase (decrease) in tax resulting from:
State income taxes, net of federal benefit		(1.5	)		3.1			(2.2	)
Federal research credit		-			(3.0	)		(1.1	)
Foreign rate differential		(0.3	)		0.4			(0.3	)
Change in foreign valuation allowance		4.5			12.2			3.4
Change in U.S. valuation allowance		28.9			(13.3	)		32.1
ASC 740-10 reserves		5.5			1.9			(0.3	)
Permanent items		3.5			0.3			5.3
U.S federal and state provision to return adjustment		1.9			-			0.7
Provision for income taxes		8.5	%		35.6	%		3.6	%

Components of the net deferred tax asset recognized

The components of the net deferred tax asset recognized in the accompanying consolidated balance sheets are as follows:

At December 31,	2012			2011
Deferred Tax Assets
Net operating loss carry forwards	$	2,349,107		$	1,962,882
Nondeductible reserves		3,339,700			1,880,276
Nondeductible accruals		1,479,545			1,527,390
Tax credits		495,486			499,099
Deferred revenue		273,608			-
Stock-based compensation		1,865,675			2,100,606
Gross Deferred Tax Assets	$	9,803,121		$	7,970,253
Valuation allowance		(9,551,668	)		(7,636,353	)
Net Deferred Tax Assets	$	251,453		$	333,900
Deferred Tax Liabilities
Fixed assets	$	(251,453	)	$	(333,900	)
Net Deferred Tax Liabilities	$	(251,453	)	$	(333,900	)
Net Deferred Tax Assets	$	-		$	-

Reconciliation of total gross unrecognized tax benefits

A reconciliation of our total gross unrecognized tax benefits for the years ended December 31, 2012, 2011, and 2010 is below.

At December 31,	2012			2011			2010
Balance at beginning of year	$	2,902,543		$	2,762,432		$	3,032,220
Tax positions related to current year:
Increase related to positions taken in current year		69,959			173,800			146,811
Increases related to positions taken during prior year		258,112			94,069			-
Decrease related to positions take during prior year		-			-			(98,923	)
Decrease related to settlements		(8,471	)		-			(12,415	)
Decrease resulting from statute expiration		(175,355	)		(127,758	)		(305,261	)
Balance at end of year	$	3,046,788		$	2,902,543		$	2,762,432