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INCOME TAXES
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3 Months Ended |
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Sep. 30, 2012
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| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | 9. INCOME TAXES
Due to losses incurred for the nine months ended September 30, 2012 and 2011, there is no current provision for income taxes.
The utilization of some or all of the Company’s net operating losses may be restricted in the future by a significant change in ownership as defined under the provisions of Section 382 of the Internal Revenue Code of 1986, as amended. In addition, utilization of the Company’s California net operating losses for the years prior to 2008 may only be carried forward ten (10) years under State law. The Company’s estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time, pursuant to ASC 740.
ASC 740 requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. At January 1, 2007, (adoption date), and at September 30, 2012, there were no unrecognized tax benefits.
The federal statute of limitations remains open for tax years 2009 through 2011. State jurisdictions generally have statutes of limitations ranging from three to five years. The Company is no longer subject to state income tax examinations by tax authorities for years before 2008.
Any interest and penalties associated with tax positions taken by the Company would be recorded as a component of other expenses in the consolidated statement of operations. For the nine months ended September 30, 2012 and 2011, there were no amounts recorded for interest and penalties. |