Annual report pursuant to section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets (liabilities) are as follows:


(in thousands)	December 31,
(in thousands)	2013			2012
Accounts receivable	$	58		$	194
Inventories		473			809
Accrued expenses		825			281
Depreciation		40			(44	)
Intangible assets		(5,320	)		(3,817	)
Stock options		1,015			755
Deferred revenue		46			(144	)
Other		6			2
Net operating loss carry forwards		9,316			18,151

		6,459			16,187
Valuation allowance		(6,459	)		(16,187	)

	$	—		$	—

Reconciliation of Tax Computed at Statutory Rate to Income Tax Expenses

The following is a reconciliation of tax computed at the statutory federal rate to the income tax expense in the statements of operations for the years ended December 31, 2013, 2012 and 2011:


	December 31,
(in thousands)	2013						2012						2011
(in thousands)	Amount			%			Amount			%			Amount			%
Tax benefit at statutory federal rate	$	(5,719	)	$	(34.0	)	$	(2,916	)		(34.0	)	$	(1,859	)		(34.0	)
Deferred state tax benefit		(258	)		(1.5	)		(618	)		(7.2	)		(21	)		(0.4	)
Change in valuation allowance		(10,446	)		(62.1	)		2,810			32.8			1,682			30.8
Goodwill impairment		—			—			676			7.9			135			2.4
Adjustment to net operating loss carryforwards		13,828			82.2			41			0.5			53			1.0
Non-deductible expenses		2,595			15.4			7			0.0			10			0.2

Income tax expense	$	—		$	—		$	—			—		$	—			—