Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2012
Income Taxes Tables  
Provisions for income taxes

For the years ended December 30, 2012 and 2011 the provisions for income taxes were as follows:

 

    2012     2011  
Federal – current   $ -     $ -  
State – current     -       3,000  
Total   $ -     $ 3,000  

 
Net deferred tax assets and liabilities

Significant components of our net deferred tax assets and liabilities as of December 30, 2012 and 2011 are as follows:

 

    2012     2011  
Deferred tax assets (liabilities):            
Net operating loss carryforwards   $ 4,681,000     $ 3,814,000  
Deferred revenue     -       16,000  
Stock based compensation     940,000       613,000  
Accrued compensation     70,000       48,000  
      634,000       600,000  
Depreciation and amortization     4,816,000       4,691,000  
Other     12,000       9,000  
Total deferred tax assets     11,153,000       9,791,000  
Valuation allowance for net deferred tax assets     (11,153,000)     (9,791,000)
Total   $ -     $ -  

 
Reconciliation of federal statutory income tax rate to our effective income tax rate

The difference between the provision for income taxes and income taxes computed using the U.S. federal income tax rate for the years ended December 31, 2012 and 2011 was as follows:

 

    2012     2011  
 Computed expected tax expense   $ (2,495,000)   $ (5,885,000)
 State taxes, net of federal benefit     (155,000)     (1,006,000)
 Other     1,288,000       180,000  
 Change in valuation allowance     1,362,000       6,714,000  
    $ -     $ 3,000