XML 59 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Note 12 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | 12. Income Taxes At December 31, 2013, we have a consolidated federal net operating loss (“NOL”) carryforward of approximately $62.4 million, available to offset against future taxable income which expires in varying amounts in 2014 through 2033. Additionally, we have approximately $799,000 in research and development (“R&D”) tax credits that expire in 2022 through 2033 unless utilized earlier. No income taxes have been paid to date. As a result of the Merger discussed in Note 7, our NOL carryforward increased substantially due to the addition of historical NOL carryforwards for Dauphin Technology, Inc. However, Section 382 of the Internal Revenue Code contains provisions that may limit our utilization of NOL and R&D tax credit carryforwards in any given year as a result of significant changes in ownership interests that have occurred in past periods or may occur in future periods. Deferred income taxes reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities included the following at December 31, 2013 and 2012:
|  | 2013 |  |  | 2012 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforward |  | $ | 21,971,742 |  |  | $ | 24,428,215 |
Research and development tax credit carryforward |  |  | 799,248 |  |  |  | 785,201 |
Stock-based compensation expense |  |  | 2,233,909 |  |  |  | 2,097,194 |
Total deferred tax assets |  |  | 25,004,899 |  |  |  | 27,310,610 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Depreciation |  |  | (2,019 | ) |  |  | (14,869 | )
Total deferred tax liabilities |  |  | (2,019 | ) |  |  | (14,869 | )
Net deferred tax assets |  |  | 25,002,880 |  |  |  | 27,295,741 |
Valuation allowance |  |  | (25,002,880 | ) |  |  | (27,295,741 | )
|  | $ | - |  |  | $ | - |
We have established a full valuation allowance equal to the amount of our net deferred tax assets due to uncertainties with respect to our ability to generate sufficient taxable income to realize these assets in the future. A reconciliation of the income tax benefit on losses at the U.S. federal statutory rate to the reported income tax expense is as follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
U.S. federal statutory rate applied to pretax loss |  | $ | (776,881 | ) |  | $ | (725,948 | ) |  | $ | (797,921 | )
Permanent differences |  |  | 3,138 |  |  |  | 2,674 |  |  |  | 4,216 |
Research and development credits |  |  | 14,047 |  |  |  | 21,236 |  |  |  | 32,675 |
Change in valuation allowance |  |  | 759,696 |  |  |  | 702,038 |  |  |  | 761,030 |
Reported income tax expense |  | $ | - |  |  | $ | - |  |  | $ | - |

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 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=26873400&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 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: 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 6: 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration