INCOME TAXES

6 Months Ended

Jun. 30, 2011

INCOME TAXES

INCOME TAXES

NOTE 11. INCOME TAXES

        We recorded a tax provision of $50,000 for the six months ended June 30, 2011, which was based on the Company's estimated effective tax rate for the year, taking into account the available net operating loss carryforwards and estimated research and development tax credits.

        We have no unrecognized tax benefits as of June 30, 2011. We do not anticipate that our total unrecognized tax benefits will significantly change prior to June 30, 2012.

        Our policy is to recognize interest and penalties related to income taxes as a component of income tax expense and there have been no such interest and penalties recorded for any of the periods presented. We are subject to income tax examinations for U.S. federal income taxes and state income taxes from 1999 forward due to net operating losses in tax years 1999 through 2008. We are subject to tax examinations in the United Kingdom from 2001 forward.