Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
  2012     2011  
             
Tax provision (benefit)                
Current                
Federal   $ —     $ —  
State     —       —  
Total current     —       —  
                 
Deferred                
Federal     (3,225,486 )     (944,333 )
State     2,291,913       (161,963 )
Total deferred     (933,573 )     (1,106,296 )
                 
Change in valuation allowance     933,573       1,106,296  
Total   $ —     $ —  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred tax assets consisted of the following at December 31:

 

    2012     2011  
             
Deferred tax assets                
Federal net operating loss   $ 22,343,084     $ 19,447,371  
Federal research and development tax credit carryforwards     1,969,426       1,956,146  
State net operating loss     2,252,566       2,444,816  
State research and development tax credit carryforwards     633,571       597,608  
Capitalized research and development expenses     11,068,868       13,007,013  
Capital loss carryforward (expires beginning in 2012)     —       340,000  
Stock-based compensation expense     842,174       333,206  
Intangible assets     440,556       555,198  
Charitable contribution carryforwards     43,350       44,370  
Accrued liabilities     25,199       35,314  
Total deferred tax assets     39,618,794       38,761,042  
                 
Deferred tax liabilities                
Depreciable assets     (271,049 )     (346,870 )
Total deferred tax liabilities     (271,049 )     (346,870 )
Net deferred tax assets     39,347,745       38,414,172  
Less valuation allowance     (39,347,745 )     (38,414,172 )
                 
Total deferred tax assets   $ —     $ —  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations is as follows:

 

    Year ended December 31,  
    2012     2011  
Income tax benefit using U.S. federal statutory rate     34.00 %     34.00 %
State income taxes     (17.20 )%     1.44 %
Permanent items     (0.17 )%     (5.21 )%
Change in valuation allowance     (10.61 )%     (14.88 )%
Other     (6.02 )%     (15.35 )%
Total     — %     — %