Annual report pursuant to Section 13 and 15(d)

Income Taxes

v2.4.0.6
Income Taxes
 12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Income Taxes
Note 10 - Income Taxes
 
The components of the provision (benefit) for income taxes are as follows:
 
  
  
Years Ended December 31,
  
   
2012
    
2011
  
CURRENT
            
Federal
  
$
-0-
    
$
-0-
  
State
    
-0-
      
-0-
  
Total current tax provision
    
-0-
      
-0-
  
                 
DEFERRED
                
Federal
    
-0-
      
-0-
  
State
    
-0-
      
-0-
  
Total deferred tax provision
    
-0-
      
-0-
  
Total tax provision (benefit)
  
$
-0-
    
$
-0-
  
 
The Components of deferred taxes consists of the following
 
Deferred Tax Assets:
                
                 
Net operating loss carry-forward
  
$
  (1,338,407)
    
$
(1,300,983
)
Less: valuation allowance
    
(1,338,407)
      
(1,300,983
)
Deferred tax assets
    
-0-
      
-0-
  
Deferred tax liabilities
    
-0-
      
-0-
  
                 
Net deferred tax asset
  
$
-0-
    
$
-0-
  
 
The Company had federal and state net operating tax loss carry-forwards of approximately $3,365,381 and $3,382,777, respectively as of December 31, 2012.  The tax loss carry-forwards are available to offset future taxable income with the federal and state carry-forwards beginning to expire in 2028.
 
In 2010, net deferred tax assets did not change due to the full allowance.  The gross amount of the asset is entirely due to the Net operating loss carry forward.  The realization of the tax benefits is subject to the sufficiency of taxable income in future years.  The combined deferred tax assets represent the amounts expected to be realized before expiration.
 
The Company periodically assesses the likelihood that it will be able to recover its deferred tax assets.  The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible profits.  As a result of this analysis of all available evidence, both positive and negative, the Company concluded that it is more likely than not that its net deferred tax assets will ultimately not be recovered and, accordingly, a valuation allowance was recorded as of December 31, 2012 and 2011.
 
The difference between the expected income tax expense (benefit) and the actual tax expense (benefit) computed by using the Federal statutory rate of 34% is as follows:
 
   
Year Ended December 31,
  
   
2012
    
2011
  
             
Expected income tax benefit (loss) at statutory rate of 34%
  
$
657,132
    
$
473,295
  
State and local tax benefit, net of federal
    
137,225
      
98,835
  
Change in valuation account
    
(794,357
)
    
(572,130)
  
                 
Income tax expense (benefit)
  
$
-0-
    
$
-0-