INCOME TAXES

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

INCOME TAXES

Deferred tax assets consist of the following (in thousands):	December 31,
		2012			2011
Net operating loss carry-forwards		$	135,633		$	134,991
Credit carry-forwards			2,095			3,209
Reserves and other			84			84
Total deferred tax assets		$	137,812		$	138,284
Valuation allowance			(137,812	)		(138, 284	)
Net deferred tax asset		$	-		$	-

The Federal net operating loss carryforward for tax purposes and state net operating loss carryforward for tax purposes is approximately $363 million and  $148 million, respectively, at December 31, 2012, which begin to expire in 2013.  The Company's ability to utilize these carryforwards may be severely limited or lost pursuant to Section 382 of the Internal Revenue Code as a result of the change in control of the Company on June 14, 2007.  Other limitations may apply as well.  The Company has made no determination as to what these limitations may be.

Deferred income taxes reflect the tax consequences on future years of differences between the tax bases of assets and liabilities and their bases for financial reporting purposes. In addition, future tax benefits, such as net operating loss carry-forwards, are recognized to the extent that realization of such benefits is more likely than not. The Company has assessed its ability to realize future tax benefits, and concluded that as a result of the history of losses, it was more likely than not, that such benefits would not be realized. Accordingly, the Company has recorded a full valuation allowance against future tax benefits.

Reconciliation of the statutory Federal income tax rate to its effective tax rate is as follows:

	December 31,
	2012			2011
Income tax benefit at federal statutory rate		35.0	%		35.0	%
State income taxes net of federal benefit		5.8	%		5.8	%
Expiring credits and other		773	%		128.7	%
Change in valuation allowance		(813.8)	%		(169.5)	%
Total		0.0	%		0.0	%

The federal income tax returns of the Company for 2010, 2011 and 2012 are subject to examination by the Internal Revenue Service, generally for the three years after they were filed.