XML 49 R17.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | 9. Income Taxes There was no income tax expense for the years ended December 31, 2013 and 2012 due to the Company’s net losses. The Company’s tax expense differs from the “expected” tax expense for the years ended December 31, 2013 and 2012 (computed by applying the Federal Corporate tax rate of 34% to loss before taxes and 3.96% for Michigan State Corporate taxes, the blended rate used was 37.96%), as follows (in thousands):
|  | 2013 |  | 2012 |
Computed “expected” tax benefit - Federal |  | $ | (4,188) |  | $ | (5,803) |
Computed “expected” tax benefit - State |  |  | (488) |  |  | (676) |
Meals, entertainment and other |  |  | 6 |  |  | 5 |
Non-deductible stock-based compensation |  |  | 511 |  |  | 518 |
Realized loss on debt securities |  |  | - |  |  | - |
Change in valuation allowance |  |  | 4,159 |  |  | 5,956 |
|  | $ | - |  | $ | - |
The effects of temporary differences that gave rise to significant portions of deferred tax assets at December 31, 2013 and 2012 are as follows (in thousands):
Deferred tax assets: |  | 2013 |  | 2012 |
Stock issued for services |  | $ | 441 |  | $ | 318 |
Bad debt - change in allowance |  |  | 1,099 |  |  | 1,099 |
Stock issued for acquisition of program |  |  | 652 |  |  | 444 |
Stock issued for license agreement |  |  | 2,707 |  |  | 2,989 |
Net operating loss carry-forward |  |  | 16,168 |  |  | 12,058 |
Total gross deferred tax assets |  |  | 21,067 |  |  | 16,908 |
Less valuation allowance |  |  | (21,067) |  |  | (16,908) |
Net deferred tax assets |  | $ | - |  | $ | - |
At December 31, 2013, the Company has a net operating loss carry-forward of approximately $42.8 million available to offset future taxable income expiring through 2033. However, utilization of these net operating losses may be limited due to potential ownership changes under Section 382 of the Internal Revenue Code. The prior year deferred tax assets were not appropriately stated. However, they have been corrected in the table above. Management does not believe this has a material impact on the consolidated financial statements for the year ended December 31, 2012. The valuation allowance at December 31, 2012 was approximately $16.9 million. The net change in valuation allowance during the year ended December 31, 2013 was an increase of approximately $4.2 million. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of December 31, 2013. ASC 740-10 “Accounting for Uncertain Tax Positions” prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. As of December 31, 2013 and 2012, the Company had no unrecognized tax benefits and no adjustments to liabilities or operations were required under ASC 740-10. The Company’s practice was and continues to be to recognize interest and penalty expenses related to uncertain tax positions in income tax expense, which was zero for the years ended December 31, 2013 and 2012. The Company files United States federal and various state income tax returns. The Company is routinely subject to examinations by taxing authorities in these various jurisdictions. The Company’s U.S. tax matters for the years 2000 through 2013 remain subject to examination by the Internal Revenue Service due to the Company’s NOL carryforwards. The Company’s U. S. tax matters remain subject to examination by various state and local tax jurisdictions due to our NOL carryforwards. The Company does not anticipate that it is reasonably possible that unrecognized tax benefits as of December 31, 2013 will significantly change within the next 12 months.

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