Annual report pursuant to Section 13 and 15(d)

13. INCOME TAXES (Tables)

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13. INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2012
Income Taxes Tables  
Schedule of statutory federal tax rate
  2012     2011  
Tax provision (benefits) computed at the statutory rate   $ 121,995     $ (626,361 )
State taxes     536,101       (101,323 )
Rate change`     1,820,798       –  
Book expenses not deductible for tax purposes     12,968       14,070  
Provision to return adjustments     (44,286 )     –  
Expired state net operating losses     1,259,187       –  
Deferred tax adjustment     (167,270 )     –  
Other     910       (46,061  
      3,540,403       (759,675 )
Change in valuation allowance for deferred tax assets     (3,571,672 )     819,675  
Income tax expense   $ (31,269 )   $ 60,000  
Schedule of deferred tax asset and liability

 

    2012     2011  
Deferred Tax Assets:                
Net operating loss carry forwards   $ 33,384,938     $ 36,302,104  
Intangibles     259,953       776,291  
Credits     –       20,000  
Other     1,207,240       1,355,849  
Total deferred tax assets     34,852,131       38,454,244  
                 
Deferred Tax Liabilities:                
Intangibles     –       –  
Other     –       (30,442 ))
Total deferred tax liabilities     –       (30,442 ))
Valuation allowance     (34,852,131 )     (38,423,802 )
Net deferred tax assets   $ –     $ –