Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of Loss before income tax expense

Loss before income tax expense for the United States of America and the State of Israel for the years ended December 31, 2012, 2011 and 2010 consisted of:

	2012			2011			2010
Loss before income tax expense:
United States of America	$	(23,482,045	)	$	(8,729,693	)	$	(4,050,035	)
State of Israel		(10,468,470	)		(1,990,084	)		—
	$	(33,950,515	)	$	(10,719,777	)	$	(4,050,035	)

Schedule of components of income tax expense attributable to income from continuing operations

Income tax expense attributable to income from continuing operations for the years ended December 31, 2012, 2011 and 2010 consisted of:

	2012		2011		2010
Current income tax expense:
Federal	$	—	$	—	$	—
State		12,033		74,959		72,782
Foreign		—		—		—
		12,033		74,959		72,782
Deferred income tax expense:
Federal		—		—		—
State		—		—		—
Foreign		—		—		—
		—		—		—
Total income tax expense	$	12,033	$	74,959	$	72,782

Schedule of significant differences between the United States federal statutory tax rate and the Company's effective tax rate for financial statement reporting purposes

	2012			2011			2010
Statutory tax rate		34	%		34	%		34	%
Stock-based compensation on ISO's		(7	)		(17	)		(8	)
State tax, net of federal benefit		—			(1	)		(2	)
Change in valuation allowance		(27	)		(17	)		(26	)
Total		—	%		(1	)%		(2	)%

Schedule of tax effects of temporary differences that give rise to the deferred tax asset

The tax effects of temporary differences that give rise to the deferred tax asset at December 31, 2012 and 2011 are as follows:

	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	101,486,000		$	97,696,000
Accrued expenses		2,569,000			2,110,000
Intangibles		284,000			282,000
Reserves		858,000			854,000
Depreciation		140,000			105,000
Net deferred tax assets		105,337,000			101,047,000
Less valuation allowance		(104,458,000	)		(98,402,000	)
Deferred tax assets		879,000			2,645,000
Deferred tax liabilities:
Acquired intangible assets		(879,000	)		(2,645,000	)
Net deferred tax assets (liabilities)	$	—		$	—

Schedule of activity related to the Company's gross unrecognized tax benefits

The following table summarizes the activity related to the Company's gross unrecognized tax benefits at December 31, 2012, 2011 and 2010:

	2012		2011		2010
Balance at beginning of year	$	—	$	—	$	5,165,535
Increases related to current tax positions		—		—		—
Decreases related to prior year tax positions		—		—		(5,165,535	)
Balance at end of year	$	—	$	—	$	—