Income Taxes

9 Months Ended

Sep. 30, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

 9.  Income Taxes

The Company recorded income tax (benefit) expense of $(20,000) and $15,000 from continuing operations in the three months ended September 30, 2011 and 2010 and $0 and $65,000 in the nine months ended September 30, 2011 and 2010, respectively.  Income tax expense reflects the recording of state income taxes. The effective tax rates are approximately 0% and 0.8% for the nine months ended September 30, 2011 and 2010, respectively.  The effective rate differs from the federal statutory rate for each year, primarily due to state and local income taxes, non-deductible costs related to intangibles, fixed asset adjustments and changes to the valuation allowance.  It is management’s belief that it is unlikely that the net deferred tax asset will be realized and, as a result, it has been fully reserved.  Additionally, the Company recorded no income tax expense related to discontinued operations for either of the nine months ended September 30, 2011 and 2010.

The Company follows the appropriate accounting guidance which prescribes a model for the recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on recognition, classification, interest and penalties, disclosure and transition.  At September 30, 2011, the Company did not have any significant unrecognized tax benefits. The total amount of interest and penalties recognized in the statements of operations for the nine months ended September 30, 2011 and 2010 is insignificant and when incurred is reported as interest expense.