| Schedule of reconciliation of income taxes |
| A reconciliation of income taxes at the U.S. Federal statutory rate to the benefit for income taxes is as follows: |
|
Year ended December 31, |
|
| |
|
2012 |
|
|
2011 |
|
| Benefit at US federal statutory rate |
|
$ |
(2,692,436 |
) |
|
$ |
(2,116,237 |
) |
| State taxes - deferred |
|
|
(395,946 |
) |
|
|
(373,454 |
) |
| Beneficial conversion feature |
|
|
- |
|
|
|
189,182 |
|
| Increase in valuation allowance, inclusive of true-ups |
|
|
3,088,382 |
|
|
|
2,397,522 |
|
| Research and development credits |
|
|
- |
|
|
|
(97,013 |
) |
| Sale of state net operating loss |
|
|
(617,615 |
) |
|
|
(320,765 |
) |
| Benefit for income taxes |
|
$ |
(617,615 |
) |
|
$ |
(320,765 |
) |
| |
|
|
|
|
|
|
|
|
| A summary of our deferred tax assets is as follows: |
|
|
|
|
|
|
|
|
| Deferred tax assets: |
|
|
|
|
|
|
|
|
| Federal and state net operating loss carryforwards |
|
$ |
11,602,301 |
|
|
$ |
10,267,000 |
|
| Federal and state research credits |
|
|
1,938,664 |
|
|
|
1,890,966 |
|
| Total gross deferred tax assets |
|
|
13,540,965 |
|
|
|
12,157,966 |
|
| Less: valuation allowance for deferred tax assets |
|
|
(13,540,965 |
) |
|
|
(12,157,966 |
) |
|
Net deferred tax assets |
|
$ |
- |
|
|
$ |
- |
|
|