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Taxes
 3 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
Taxes

NOTE 10 — Taxes

 

Income tax expense during the three months ended March 31, 2012 and 2011, and the deferred income tax amounts shown on the Company’s Condensed Balance Sheets, is related entirely to the deferred tax liability on the portion of the Company’s goodwill amortized for tax purposes. Due to the indefinite characteristic of this deferred tax liability, it cannot be offset against deferred tax assets. As a result, the Company recognized deferred tax expense of $7,985 in each of the three month periods ended March 31, 2012 and 2011.

 

At December 31, 2011, the Company has an unrecognized tax benefit of approximately $635,000, which did not change significantly during the three months ended March 31, 2012. Future changes in the unrecognized tax benefit are unlikely to have an impact on the effective tax rate due to the full valuation allowance recorded on the Company’s deferred tax assets, as realization of the deferred tax assets is dependent upon future taxable income.