Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the income tax benefit computed at the Federal statutory rates to our recorded tax benefit for the years ended December 31, 2012, 2011 and 2010 is as follows:

(in thousands)	December 31,
	2012			2011			2010
Income tax benefit, statutory rates	$	12,687		$	7,128		$	6,519
State taxes on income, net of Federal benefit		2,288			1,633			1,206
Research and development tax credit		332			662			656
Employee Related		(988	)		(1,758	)		(4,746	)
Warrant Valuation Related		189			1,210			2,184
Other		–			–			18
Income tax benefit		14,508			8,875			5,837
Valuation allowance		(14,508	)		(8,875	)		(5,837	)
Income tax benefit	$	–		$	–		$	–

Schedule of Deferred Tax Assets and Liabilities

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

(in thousands)	December 31,
	2012			2011
Long-term deferred tax assets:
Net operating loss carryforwards (Federal and state)	$	160,522		$	147,045
Research and development tax credits		9,412			9,080
Compensation expense on stock		3,154			3,535
Charitable contribution carryforward		7			7
Other accrued		524			608
Depreciation		2,665			2,682
Capitalized research and development		1,516			1,740
Total long-term deferred tax assets		177,800			164,697
Long-term deferred tax liabilities		–			–
Net deferred tax assets		177,800			164,697
Less: valuation allowance		(177,800	)		(164,697	)
Deferred tax assets, net of valuation allowance	$	–		$	–