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
)
                 
   
$
-
   
$
-