Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

5. Income Taxes

As of December 31, 2012 the Company has a federal net operating loss carryforward of approximately $11.9 million, the utilization of which is limited under IRS Code Section 382 due to changes in the ownership of the Company's stock. The Company also had a state net operating loss carryforward of approximately $4.9 million. The NOL carryforwards generated in the years 2005-2008 expire in 2025 thru 2028, and can be used at a rate of $344,000 per year based on Section 382 limitations. The NOL carryforwards generated in the years 2009 through 2012 expire in 2029 through 2031, and are not currently subject to Section 382 limitations.

Since it is not likely that deferred tax assets will be realized, no current tax benefit was recognized. Net deferred assets have been fully reserved.

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities, shown net in the deferred tax asset on the Consolidated Statements of Financial Condition, consisted of the following (dollar amounts in thousands):

	Year Ended
	December 31,
	2012			2011
Deferred tax assets:
Unrealized loss on investment		221			--
Net operating loss carryforward		4,450			4,208
Gross deferred tax asset	$	4,671		$	4,208
Deferred tax liabilities:
Deferred state income taxes		(105	)		(4	)
Unrealized gain on investments		--			(211	)
Gross deferred tax liabilities		(105	)		(215	)
Net deferred tax asset		4,566			3,993
Valuation reserve		(4,566	)		(3,993	)
	$	--		$	--

A reconciliation of income tax (benefit) with expected federal income tax expense (benefit) computed at the applicable federal tax rate of 35% is as follows (dollar amounts in thousands):

	Year Ended
	December 31,
	2012			2011
Expected income tax (benefit)	$	(317	)	$	(8	)
Increase/Decrease in income tax resulting from:
Other		97			--
Change in valuation reserve		220			8
Income tax expense	$	--		$	--