Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

A reconciliation of the total income tax provision tax rate to the statutory federal income tax rate of 34% for the years ended December 31, 2012, 2011 and 2010 is as follows:

	2012			2011			2010
Income tax expense (benefit) at federal statutory rate		(34.00	) %		(34.00	) %		(34.00	) %
Income tax expense (benefit) at state statutory rate		(2.79	) %		(3.36	) %		(2.62	) %
Mark to market permanent adjustment		(0.24	) %		(5.02	) %		(1.71	) %
Change in federal valuation allowance		35.86	%		45.72	%		40.47	%
Change in State Rate		(8.36	) %		(3.29	) %		0.00	%
Deferred revenue		0.00	%		(2.09	) %		(2.82	) %
Foreign rate differential		(0.04	) %		0.00	%		0.00	%
Other, net		9.57	%		2.04	%		0.68	%
		0.00	%		0.00	%		0.00	%

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2012 and 2011 are as follows:

	2012			2011
Deferred tax assets:
Allowances and reserves	$	169,000		$	292,000
Accrued expenses		1,053,000			587,000
Deferred revenue		1,138,000			3,276,000
Stock based compensation		5,635,000			4,886,000
Net operating loss carryforwards		87,045,000			73,774,000
Income tax credit carryforwards		5,729,000			5,569,000
Property and equipment, principally due to differences in depreciation		422,000			707,000
Other		295,000			181,000
		101,486,000			89,272,000
Valuation allowance		(101,476,000	)		(89,200,000	)

Total deferred tax assets, net of allowance		10,000			72,000

Deferred tax liabilities:
Intangibles		(10,000	)		(72,000	)

Total deferred tax liability		(10,000	)		(72,000	)

Net deferred tax assets (liability)	$	—		$	—

Unrecognized Tax Benefits Activity

Following is a tabular reconciliation of the unrecognized tax benefits activity during the years ended December 31, 2012, 2011 and 2010:

	2012		2011		2010
Unrecognized Tax Benefits – Beginning	$	1,304,000	$	1,166,000	$	1,115,000
Gross increases – tax positions in prior period		—		—		—
Gross decreases – tax positions in prior period		—		—		(49,000	)
Gross increase – current-period tax positions		90,000		138,000		100,000
Settlements		—		—		—
Lapse of statute of limitations		—		—		—
Unrecognized Tax Benefits – Ending	$	1,394,000	$	1,304,000	$	1,166,000