Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Components of the Provision for Income Taxes

The components of the provision for income taxes for the Years Ended December 31, 2013 and 2012 are as follows:

 

     2013     2012  

Current

   $ —       $ —    

Deferred

     (5,679,857 )     (4,879,978 )

Valuation Allowance

     5,679,857        4,879,978   

Total provision for income taxes

   $ —       $ —    
Components of Deferred Tax

At December 31, 2013 and 2012, the Company had temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective income tax bases, as measured by enacted state and federal tax rates, as follows:

 

     2013     2012  

Deferred tax assets (liabilities):

    

Net operating loss carryforward

   $ 24,339,362      $ 18,570,820   

Bad debt reserve

     48,263        48,725   

Inventory reserve

     11,840        95,229   

Sales return allowance

     12,546        69,848   

Accrued vacation

     32,098        20,338   

Deferrals of compensation to Directors & Officers

     9,596        9,596   

Deferred grant revenue

     —          8,729   

Uniform capitalization (UNICAP)

     (130     6,481   

Non-qualified stock compensation

     513,106        457,058   

Restricted stock

     42,590        42,590   

Accrued Interest

     (134,222 )     (134,222
  

 

 

   

 

 

 

Total deferred tax assets, net

     24,875,049        19,195,192   

Less valuation allowance

     (24,875,049 )     (19,195,192 )
  

 

 

   

 

 

 

Total net deferred taxes

   $ —       $ —    
Reconciliation of Tax Computed at the Statutory Federal Rate

The following is a reconciliation of tax computed at the statutory federal rate to the income tax benefit in the statements of operations for the years ended December 31, 2013 and 2012:

 

     2013     2012  

Income tax benefit computed at statutory federal rate of 34%

   $ (5,463,376 )   $ (4,450,752 )

State income tax benefits, net of federal expense/benefit

     (583,296 )     (475,183 )

Change in valuation allowance

     5,679,857        4,879,978   

Non-deductible expenses

     248,178        54,879   

Other

     118,637        (8,922
  

 

 

   

 

 

 

Total

   $ —       $ —    
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

Balance as of December 31, 2011

   $ 550,962   

Additions based on tax positions related to the current year

     329,676   

Additions for the tax positions of prior years

     —    

Reductions for the tax positions of prior years

     —    
  

 

 

 

Balance as of December 31, 2012

   $ 880,638   

Additions based on tax positions related to the current year

     361,143   

Additions for the tax positions of prior years

     —    

Reductions for the tax positions of prior years

     —    
  

 

 

 

Balance as of December 31, 2013

   $ 1,241,781