Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

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, 2013, 2012 and 2011 is as follows:

	2013			2012			2011
Income tax expense (benefit) at federal statutory rate		(34.00	)%		(34.00	)%		(34.00	)%
Income tax expense (benefit) at state statutory rate		(3.54	)%		(2.79	)%		(3.36	)%
Gain on previously held equity interest in joint venture		(7.02	) %		0.00	%		0.00	%
Mark to market permanent adjustment		(2.15	)%		(0.24	)%		(5.02	)%
Change in federal valuation allowance		80.13	%		35.86	%		45.72	%
Change in state rate		(1.01	)%		(8.36	)%		(3.29	)%
Deferred revenue		0.00	%		000	%		(2.09	)%
Acquired NOL’s/Intangibles from joint venture		(33.40	) %		0.00	%		0.00	%
Foreign rate differential		2.48	%		(0.04	)%		0.00	%
Other, net		(1.49	)%		9.57	%		2.04	%
		0.00	%		0.00	%		0.00	%

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and deferred tax liabilities as of December 31, 2013 and 2012 are as follows:

	2013			2012
Deferred tax assets:
Allowances and reserves	$	639,000		$	169,000
Accrued expenses		718,000			1,053,000
Deferred revenue and gain-on-sale		79,000			1,138,000
Stock based compensation		6,962,000			5,635,000
Net operating loss carryforwards		107,846,000			87,045,000
Income tax credit carryforwards		6,710,000			5,729,000
Property and equipment, principally due to differences in depreciation		804,000			422,000
Other,net		296,000			295,000
		124,054,000			101,486,000
Valuation allowance		(122,450,000	)		(101,476,000	)

Total deferred tax assets, net of allowance		1,604,000			10,000

Deferred tax liabilities:
Intangibles		(1,604,000	)		(10,000	)

Total deferred tax liability		(1,604,000	)		(10,000	)

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, 2013, 2012 and 2011:

	2013		2012		2011
Unrecognized Tax Benefits – Beginning	$	1,394,000	$	1,304,000	$	1,166,000
Gross increases – tax positions in prior period		69,000		—		—
Gross decreases – tax positions in prior period		—		—		—
Gross increase – current-period tax positions		260,000		90,000		138,000
Settlements		—		—		—
Lapse of statute of limitations		—		—		—
Unrecognized Tax Benefits – Ending	$	1,723,000	$	1,394,000	$	1,304,000