<?xml version="1.0" encoding="us-ascii"?><InstanceReport xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"><Version>2.4.0.8</Version><ReportLongName>00000015 - Disclosure - Income Taxes</ReportLongName><DisplayLabelColumn>true</DisplayLabelColumn><ShowElementNames>false</ShowElementNames><RoundingOption /><HasEmbeddedReports>false</HasEmbeddedReports><Columns><Column FlagID="0"><Id>1</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><CurrencyCode /><FootnoteIndexer /><hasSegments>false</hasSegments><hasScenarios>false</hasScenarios><MCU><KeyName /><CurrencySymbol /><contextRef><ContextID>From2012-07-01to2013-06-30</ContextID><EntitySchema>http://www.sec.gov/CIK</EntitySchema><EntityValue>0000889971</EntityValue><PeriodDisplayName /><PeriodType>duration</PeriodType><PeriodStartDate>2012-07-01T00:00:00</PeriodStartDate><PeriodEndDate>2013-06-30T00:00:00</PeriodEndDate><Segments /><Scenarios /></contextRef><UPS /><CurrencyCode /><OriginalCurrencyCode /></MCU><CurrencySymbol /><Labels><Label Key="CalendarSupplement" Id="0" Label="12 Months Ended" /><Label Key="Calendar" Id="1" Label="Jun. 30, 2013" /></Labels></Column></Columns><Rows><Row FlagID="0"><Id>1</Id><IsAbstractGroupTitle>true</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><Level>1</Level><ElementName>LPTH_IncomeTaxesAbstract</ElementName><ElementPrefix>LPTH_</ElementPrefix><IsBaseElement>false</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText /><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>xbrli:stringItemType</ElementDataType><SimpleDataType>string</SimpleDataType><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Income Taxes</Label></Row><Row FlagID="0"><Id>2</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><Level>2</Level><ElementName>us-gaap_IncomeTaxDisclosureTextBlock</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><PreferredLabelRole>verboseLabel</PreferredLabelRole><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2012-07-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"&gt;&lt;div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"&gt;&lt;div&gt;&lt;div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"&gt;&lt;font style="display: inline; font: bold 10pt Times New Roman"&gt;8.&amp;#160;&amp;#160;Income Taxes&lt;/font&gt;&lt;/div&gt;

&lt;div style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"&gt;&lt;font style="display: inline; font: 10pt Times New Roman"&gt;&amp;#160;&lt;/font&gt;&lt;/div&gt;

&lt;div style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"&gt;&lt;font style="display: inline; font: 10pt Times New Roman"&gt;Due to the Company's taxable losses from operations prior to fiscal 2013, there was no provision for income taxes and no taxes were paid during the years ended June 30, 2013 and 2012. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows at June 30:&lt;/font&gt;&lt;/div&gt;

&lt;div style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"&gt;&lt;font style="display: inline; font: 10pt Times New Roman"&gt;&amp;#160;&lt;/font&gt;&lt;/div&gt;

&lt;div style="text-align: center"&gt;
&lt;table cellpadding="0" cellspacing="0" style="width: 90%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman"&gt;
&lt;tr&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td colspan="2" style="vertical-align: bottom; width: 16%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;
&lt;div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&lt;font style="display: inline; font: bold 10pt times new roman"&gt;2013&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td colspan="2" style="vertical-align: bottom; width: 16%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;
&lt;div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&lt;font style="display: inline; font: bold 10pt times new roman"&gt;2012&lt;/font&gt;&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: #cceeff"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Deferred tax assets:&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td colspan="2" style="vertical-align: bottom; width: 16%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;
&lt;div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td colspan="2" style="vertical-align: bottom; width: 16%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;
&lt;div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: white"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; padding-left: 0pt; margin-left: 9pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Net operating loss and credit carryforwards&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;35,210,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;36,606,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: #cceeff"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; padding-left: 0pt; margin-left: 9pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Intangible assets&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;148,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;248,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: white"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; padding-left: 0pt; margin-left: 9pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Capital loss and R&amp;#38;D credits&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;1,442,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;1,496,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: #cceeff"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; padding-left: 0pt; margin-left: 9pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Research development expenses&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;652,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;694,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: white"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; padding-left: 0pt; margin-left: 9pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Inventory&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;100,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;57,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: #cceeff"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; padding-bottom: 2px; text-indent: 0pt; padding-left: 0pt; margin-left: 9pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Accrued expenses and other&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; border-bottom: #000000 2px solid; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; border-bottom: #000000 2px solid; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;56,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; border-bottom: #000000 2px solid; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; border-bottom: #000000 2px solid; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;110,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: white"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160; &lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: #cceeff"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Gross deferred tax assets&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;37,608,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;39,211,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: white"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Valuation allowance for deferred tax assets&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; border-bottom: #000000 2px solid; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; border-bottom: #000000 2px solid; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;(37,246,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; border-bottom: #000000 2px solid; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; border-bottom: #000000 2px solid; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;(38,800,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: #cceeff"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; padding-left: 0pt; margin-left: 9pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Total deferred tax assets&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;362,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;411,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: white"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Deferred tax liabilities:&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: #cceeff"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; padding-bottom: 2px; text-indent: 0pt; padding-left: 0pt; margin-left: 9pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Depreciation and other&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; border-bottom: #000000 2px solid; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; border-bottom: #000000 2px solid; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;(362,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; border-bottom: #000000 2px solid; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; border-bottom: #000000 2px solid; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;(411,000&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 2px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;)&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;tr style="background-color: white"&gt;
&lt;td style="vertical-align: bottom; width: 60%; text-align: left; padding-bottom: 4px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;
&lt;div style="text-align: left; text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;Net deferred tax liability&lt;/font&gt;&lt;/div&gt;
&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; padding-bottom: 4px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; border-bottom: #000000 4px double; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; border-bottom: #000000 4px double; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#8212;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 4px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 3%; text-align: left; padding-bottom: 4px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 1%; border-bottom: #000000 4px double; text-align: left; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;$&lt;/font&gt;&lt;/td&gt;
&lt;td style="vertical-align: bottom; width: 15%; border-bottom: #000000 4px double; text-align: right; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#8212;&lt;/font&gt;&lt;/td&gt;
&lt;td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left; padding-bottom: 4px; text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"&gt;&lt;font style="display: inline; font: 10pt times new roman"&gt;&amp;#160;&lt;/font&gt;&lt;/td&gt;
&lt;/tr&gt;&lt;/table&gt;
&lt;/div&gt;

&lt;div style="text-indent: 0pt; display: block"&gt;&lt;font style="display: inline; font: 10pt Times New Roman"&gt;&amp;#160;&lt;/font&gt;&lt;/div&gt;

&lt;div style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"&gt;&lt;font style="display: inline; font: 10pt Times New Roman"&gt;The reconciliation of income tax attributable to operations computed at the United States federal statutory tax rates and the actual tax provision of zero results primarily from the change in the valuation allowance.&lt;/font&gt;&lt;/div&gt;

&lt;div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"&gt;&lt;/div&gt;



&lt;div style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"&gt;&lt;font style="display: inline; font: 10pt Times New Roman"&gt;&amp;#160;&lt;/font&gt;&lt;/div&gt;

&lt;div style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"&gt;&lt;font style="display: inline; font: 10pt Times New Roman"&gt;In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. In order to fully realize the deferred tax asset, the Company will need to generate future taxable income of approximately $93.5 million prior to the expiration of net operating loss carry-forwards from 2014 through 2033. Based on the level of historical taxable income, management has provided for a valuation adjustment against the deferred tax assets of $37,234,000 at June 30, 2013, a decrease of approximately $1,566,000 over June 30, 2012.&lt;/font&gt;&lt;/div&gt;

&lt;div style="text-indent: 0pt; display: block"&gt;&lt;br /&gt;
&lt;/div&gt;

&lt;div style="text-indent: 27pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"&gt;&lt;font style="display: inline; font: 10pt Times New Roman"&gt;At June 30, 2013, in addition to net operating loss carry forwards, the Company also has research and development credit carry forwards of approximately $1,442,000. A portion of the net operating loss carry forwards may be subject to certain limitations of the Internal Revenue Code Section 382 which would restrict the annual utilization in future periods due principally to changes in ownership in prior periods.&lt;/font&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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 -Section 50

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 -URI http://asc.fasb.org/extlink&amp;oid=6907707&amp;loc=d3e32537-109319



Reference 6: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 740

 -SubTopic 10

 -Section 50

 -Paragraph 3

 -URI http://asc.fasb.org/extlink&amp;oid=6907707&amp;loc=d3e32559-109319



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