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INCOME TAXES | 12 Months Ended
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Dec. 31, 2012
Income Tax Disclosure [Abstract] |
Income Tax | INCOME TAXES The Company’s provision for income taxes for the years ended December 31, 2012, 2011 and 2010 relates to income taxes in states, foreign countries and other local jurisdictions and differs from the amounts determined by applying the statutory Federal income tax rate to loss before income taxes for the following reasons:
|  | Dollars in Thousands
|  | 2012 |  | 2011 |  | 2010
Benefit at federal rate |  | $ | (2,781 | ) |  | $ | (3,311 | ) |  | $ | (1,015 | )
Increase (decrease) resulting from: |  |  |  |  |  |
State income taxes—net of federal benefit |  | 2 |  |  | 2 |  |  | 20 |
Foreign subsidiary tax rate difference |  | (27 | ) |  | (94 | ) |  | (27 | )
Tax contingency |  | 22 |  |  | 28 |  |  | 45 |
Expiring net operating loss carryforwards |  | 1,472 |  |  | 988 |  |  | — |
Earnings repatriation |  | 582 |  |  | — |  |  | 1,479 |
Miscellaneous permanent differences |  | 284 |  |  | 332 |  |  | 60 |
Liability warrants |  | (748 | ) |  | 2,062 |  |  | — |
Tax credits |  | 215 |  |  | — |  |  | — |
Other—net |  | 15 |  |  | (53 | ) |  | 86 |
Valuation allowance |  | 1,110 |  |  | 91 |  |  | (498 | )
Current income tax expense |  | $ | 146 |  |  | $ | 45 |  |  | $ | 150 |
|  | Dollars in Thousands
|  | 2012 |  | 2011 |  | 2010
Federal: |  |  |  |  |  |
Current |  | $ | — |  |  | $ | 16 |  |  | $ | 4 |
Deferred |  | — |  |  | — |  |  | — |
Total Federal |  | $ | — |  |  | $ | 16 |  |  | $ | 4 |
State: |  |  |  |  |  |
Current |  | $ | 3 |  |  | $ | 3 |  |  | $ | 29 |
Deferred |  | — |  |  | — |  |  | — |
Total State |  | $ | 3 |  |  | $ | 3 |  |  | $ | 29 |
Foreign: |  |  |  |  |  |
Current |  | $ | 46 |  |  | $ | 159 |  |  | $ | 111 |
Deferred |  | 97 |  |  | (133 | ) |  | 6 |
Total Foreign |  | $ | 143 |  |  | $ | 26 |  |  | $ | 117 |
Total Tax Provision |  | $ | 146 |  |  | $ | 45 |  |  | $ | 150 |
The Company’s deferred income tax asset at December 31, 2012 and 2011 is comprised of the following temporary differences:
|  | Dollars in Thousands
|  | 2012 |  | 2011
Deferred Tax Asset: |  |  |  |
Net operating loss carryforward |  | $ | 39,481 |  |  | $ | 38,154 |
Research and development credit carryforwards |  | 1,017 |  |  | 1,232 |
Deferred revenue |  | 188 |  |  | 190 |
Inventory |  | 224 |  |  | 184 |
Other |  | 432 |  |  | 552 |
|  | 41,342 |  |  | 40,312 |
Less valuation allowance |  | (41,342 | ) |  | (40,232 | )
Deferred Tax Asset |  | $ | — |  |  | $ | 80 |
Deferred Tax Liability: |  |  |  |
Other miscellaneous |  | $ | 19 |  |  | $ | 2 |
Deferred Tax Liability |  | $ | 19 |  |  | $ | 2 |
Net Deferred Asset (Liability) |  | $ | (19 | ) |  | $ | 78 |
At December 31, 2012, we had total unused federal tax net operating loss carryforwards of $109.3 million. The expiration dates are as follows (amounts in thousands):
2018 | $ | 1,838 |
2019 | 8,181 |
2020 | 9,662 |
2021 | 8,228 |
2022 | 16,862 |
2023 | 16,173 |
2024 | 17,390 |
2025 | 8,153 |
2026 | 6,792 |
2027 | 3,238 |
2028 | 1,272 |
2029 | 591 |
2031 | 2,784 |
2032 | 8,126 |
| $ | 109,290 |
Of these federal net operating loss carryforwards, $1.2 million were obtained in the acquisition of Annovis, Inc. and may be subject to certain restrictions. Remaining net operating loss carryforwards could be subject to limitations under section 382 of the Internal Revenue Code. At December 31, 2012, we had unused state tax net operating loss carryforwards of approximately $46.0 million that expire at various times beginning in 2013. At December 31, 2012, we had unused research and development credit carry-forwards of $1.0 million that expire at various times between 2013 and 2024. A net deferred tax liability was recorded during 2012 related to the UK income taxes for less than $0.1 million. A valuation allowance has been provided for the remaining deferred tax assets, due to the cumulative losses in recent years and an inability to utilize any additional losses as carrybacks. We will continue to assess the recoverability of deferred tax assets and the related valuation allowance. To the extent we begin to generate income in future years and it is determined that such valuation allowance is no longer required, the tax benefit of the remaining deferred tax assets will be recognized at such time. Our liability for uncertain certain tax positions, which was included in other long term liabilities, was $0.3 million and $0.2 million as of December 31, 2012 and 2011, respectively. We recorded less than $0.1 million of additional uncertain tax positions during each of the years ended 2012 and 2011. We had no material interest or penalties during fiscal 2012 or fiscal 2011, and we do not anticipate any such items during the next twelve months. Our policy is to record interest and penalties directly related to income taxes as income tax expense in the Consolidated Statements of Operations. We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. We have statutes of limitation open for Federal income tax returns related to tax years 2009 through 2012. We have state income tax returns subject to examination primarily for tax years 2009 through 2012. Open tax years related to foreign jurisdictions remain subject to examination. Our primary foreign jurisdiction is the United Kingdom, which has open tax years for 2009 through 2012. During the years ended December 31, 2012 and 2011, there were no material changes to the liability for uncertain tax positions. The liability for uncertain tax positions of $0.3 million which is recorded in other long liabilities on the Balance Sheet relates to potential uncertain tax positions in foreign jurisdictions.

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: 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&oid=6907707&loc=d3e32559-109319 + Details
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