Annual report pursuant to Section 13 and 15(d)

Income taxes

v2.4.0.8
Income taxes
 12 Months Ended
Dec. 31, 2013
Income taxes [Abstract]  
Income taxes
Note 8.  Income taxes:

Income taxes at the federal statutory rate are reconciled to the Company's actual income taxes as follows:

   
 
2013
    
2012
    
2011
  
                   
Federal income tax benefit at 34%
  
$
(4,131,000
)
  
$
(3,132,000
)
  
$
(3,473,000
)
State income tax net of federal tax effect
    
(364,000
)
    
(276,000
)
    
(306,000
)
Permanent items
    
535,000
      
339,000
      
504,000
  
Other
    
(72,000
)
    
121,000
      
-
  
Valuation allowance
    
4,032,000
      
2,948,000
      
3,275,000
  
   
$
-
    
$
-
    
$
-
  
 
As of December 31, 2013, the Company has net operating loss carry forwards of approximately $80 million for federal and state tax purposes, which are available to offset future taxable income, if any, expiring through December 2033. A valuation allowance was recorded at December 31, 2013 due to the uncertainty of realization of deferred tax assets in the future.
 
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at December 31, 2013 and 2012 are as follows:
 
   
2013
    
2012
  
             
Deferred tax assets (liabilities):
            
Net operating loss carry forwards
  
$
29,494,000
    
$
25,100,000
  
                 
Property and equipment
    
37,000
      
32,000
  
Patents and other intangible assets
    
14,000
      
17,000
  
Other
    
(12,000
) 
    
-
  
Deferred revenue
    
(39,000
) 
    
551,000
  
Research and development credit
    
991,000
      
753,000
  
                 
Deferred tax asset
    
30,485,000
      
26,453,000
  
Valuation allowance
    
(30,485,000
)
    
(26,453,000
)
                 
   
$
-
    
$
-