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Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Taxes [Abstract]  
Income Taxes

Note 13 - Income Taxes

 

The income tax provision reconciled to the tax computed at the statutory Federal rate follows:

 

    2011     2010  
             
Tax Expense at Statutory Rate   $ 343,610     $ 3,654,578  
Valuation Allowance     (354,684 )     (3,633,679 )
Non-Deductible Expenses and Other     11,074       3,776  
Income tax expense   $ -     $ 24,675  
                 
Current   $ -     $ 24,675  
Deferred     -       -  
Total   $ -     $ 24,675  

 

Deferred income taxes are comprised of the following at December 31, 2011 and 2010:

 

    2011     2010  
Deferred tax assets (liabilities):                
Inventories   $ 94,640     $ 94,640  
Stock options and other     44,195       44,196  
Alternative Minimum Tax credit carryforward     24,675       24,675  
Contingencies and accruals     622,085       870,642  
Property and equipment     (372,276 )     (124,366 )
Capital loss carryover     25,420       25,420  
Net operating loss carryforward     7,536,703       7,374,643  
Goodwill and intangibles     (21,214 )     (937 )
Total deferred tax assets, net     7,954,228       8,308,913  
                 
Valuation allowance   $ (7,954,228 )   $ (8,308,913 )

 

As of December 31, 2011, the Company had approximately $848,019 of net operating loss carry-forwards, related to the Superior Galleries acquisition which may be available to reduce taxable income in future years, subject to the applicable Internal Revenue Code Section 382 limitations. As of December 31, 2011, the Company had approximately $26,170,038 of net operating loss carry-forwards related to Superior Galleries' post acquisition operating losses and other operating losses incurred by the Company's other operations. These carry-forwards will expire, starting in 2024 if not utilized. As of December 31, 2011 and 2010, the Company determined based on consideration of all available evidence, including but not limited to historical, current and future anticipated financial results as well as applicable IRS limitation and expiration dates related to the Company's net operating losses a full valuation allowance should be recorded for its net deferred tax assets.