Annual report pursuant to section 13 and 15(d)

11. INCOME TAXES (Tables)

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11. INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
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   $ -     $ -