Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

Income Taxes
3 Months Ended
Mar. 31, 2012
Income Taxes  
Income Taxes
Income Taxes
No provision for Federal and state income taxes was required for the three months ended March 31, 2012 and 2011 due to the Company's operating losses and increased deferred tax asset valuation allowance.  At March 31, 2012 and December 31, 2011, the Company has unused net operating loss carry-forwards of approximately $57,150,000 and $55,394,000 which expire at various dates between 2021 and 2031.  Some of this amount may be subject to annual limitations under certain provisions of the Internal Revenue Code related to "changes in ownership."
As of March 31, 2012 and December 31, 2011, the deferred tax assets related to the aforementioned carry-forwards have been fully offset by valuation allowances, since significant utilization of such amounts is not presently expected in the foreseeable future.
Deferred tax assets and valuation allowances consist of:
March 31,
December 31,
Net Operating Loss Carryforwards
  $ 22,288,500     $ 21,603,700  
Stock option expense
    1,789,000       1,753,400  
Book tax differences on assets and liabilities
    354,000       348,600  
Valuation Allowance
    (24,431,500 )     (23,705,700 )
Net Deferred Tax Assets
  $ -     $ -  
The Company files income tax returns in the U.S. Federal and Maryland state jurisdictions.  Tax years for fiscal 2008 through 2011 are open and potentially subject to examination by the Federal and Maryland state taxing authorities.