Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

A Reconciliation of the total Income Tax Provision

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, 2014, 2013 and 2012 is as follows:

	2014			2013			2012
Income tax expense (benefit) at federal statutory rate		(34.00)	%		(34.00)	%		(34.00)	%
Income tax expense (benefit) at state statutory rate		(3.52)	%		(3.54)	%		(2.79)	%
Gain on previously held equity interest in joint venture		0.00	%		(7.02)	%		0.00	%
Mark to market permanent adjustment		(0.37)	%		(2.15)	%		(0.24)	%
Change in valuation allowance		27.12	%		80.13	%		35.86	%
Change in state rate		0.02	%		(1.01)	%		(8.36)	%
Permanent interest adjustments		4.17	%		0.00	%		0.00	%
Debt refinance permanent adjustment		3.92	%		0.00	%		0.00	%
Acquired NOL’s/Intangibles from joint venture		0.00	%		(33.40)	%		0.00	%
Foreign rate differential		0.00	%		2.48	%		(0.04)	%
Other, net		2.66	%		(1.49)	%		9.57	%
		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, 2014 and 2013 are as follows:

	2014				2013
Deferred tax assets:
Allowances and reserves		$	825,000			$	639,000
Accrued expenses			502,000				718,000
Deferred revenue and gain-on-sale			32,000				79,000
Stock based compensation			7,786,000				6,962,000
Net operating loss carryforwards			117,258,000				107,846,000
Income tax credit carryforwards			6,993,000				6,710,000
Property and equipment, principally due to differences in depreciation			926,000				804,000
Other,net			77,000				296,000
			134,399,000				124,054,000
Valuation allowance			(132,583,000	)			(122,450,000	)

Total deferred tax assets, net of allowance			1,816,000				1,604,000

Deferred tax liabilities:
Intangibles			(1,816,000	)			(1,604,000	)

Total deferred tax liability			(1,816,000	)			(1,604,000	)

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, 2014, 2013 and 2012:

	2014		2013		2012
Unrecognized Tax Benefits – Beginning	$	1,723,000	$	1,394,000	$	1,304,000
Gross increases – tax positions in prior period		—		69,000		—
Gross decreases – tax positions in prior period		—		—		—
Gross increase – current-period tax positions		129,000		260,000		90,000
Settlements		—		—		—
Lapse of statute of limitations		—		—		—
Unrecognized Tax Benefits – Ending	$	1,852,000	$	1,723,000	$	1,394,000