Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

	As of December 31,
	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	24,767,569		$	29,701,483
R&D credit carryforwards		6,546,049			7,610,672
Temporary differences		2,408,108			371,610
Deferred tax assets before valuation allowance		33,721,726			37,683,765
Valuation allowance		(33,721,726	)		(37,683,765	)
Net deferred tax assets	$	--		$	--

Schedule of Credit Carryforward Amounts

		As of December 31, 2012
Generated	Expiration		U.S. Net Operating Loss Carryforwards		U.S. R&D Credit Carryforwards
1998	2013	$	17,142,781	$	1,173,387
1999	2014		--		130,359
2000	2015		--		71,713
2001	2016		--		39,128
2002	2017		1,282,447		5,350
2003	2018		337,714		2,905
2004	2019		1,237,146		22,861
2005	2020		3,246,062		218,332
2006	2021		3,127,238		365,541
2007	2022		2,863,443		342,898
2008	2023		2,826,656		531,539
2009	2024		13,753,769		596,843
2010	2025		5,425,105		1,094,449
2011	2026		1,904,744		1,950,744
2012	2027		27,744,687		--
Total carryforwards		$	80,891,792	$	6,546,049

Schedule of Effective Income Tax Rate Reconciliation

	Years Ended December 31,
	2012						2011						2010
	Amount			%			Amount			%			Amount			%
Benefit at statutory rate	$	(9,913,450	)		(34.0	%)	$	(8,516,176	)		(34.0	%)	$	(19,122,958	)		(34.0	%)
Adjustments to valuation allowance		9,668,770			33.2	%		--			--			3,410,056			6.1	%
Loss on extinguishment of debt		--			--			--			--			14,179,468			25.2	%
Permanent items and other		244,680			0.8	%		636,033			2.5	%		(601,469	)		(1.1	%)
Benefit per financial statements	$	--					$	(7,880,143	)				$	(2,134,903	)

- Definition

Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances.

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