INCOME TAXES

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 11:  INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Income taxes for years ended December 31, are summarized as follows:

	2012			2011
Current (benefit)/liability	$	(6,075	)	$	11,739
Deferred provision		-			-
Net income tax provision	$	(6,075	)	$	11,739

A reconciliation of the differences between the effective and statutory income tax rates for years ended December 31, is as follows:

	2012						2011
	Amount			Percent			Amount			Percent
Federal statutory rates	$	29,014			34	%	$	5,826			34	%
State income taxes		5,973			7	%		1,199			7	%
Permanent differences		9,733			11	%		6,493			38	%
Return to provision adjustments		(48,777	)		(57	)%		248,615			1,451	%
Changes in valuation allowance, including the utilization of net operating loss carryforwards		4,057			5	%		(262,133	)		(1,530	)%
Tax refund		(6,075	)		(7	)%		-			-	%
Alternative minimum tax		-			-	%		11,739			69	%
Effective rate	$	(6,075	)		(7	)%	$	11,739			69	%

At December 31, deferred income tax assets and liabilities were comprised of:

	2012			2011
Deferred tax assets (liabilities) - current:
Stock-based compensation	$	66,935		$	72,125
Book-tax differences in operating assets		27,270			90,427
Total current deferred tax assets (liabilities)		94,205			162,552
Deferred tax assets (liabilities) - long-term:
Property, plant and equipment		7,570			(4,316	)
Net operating loss carryforwards		458,460			397,942
Total net deferred tax assets		560,235			556,178
Valuation allowance		(560,235	)		(556,178	)
Net deferred tax assets	$	-		$	-

A full valuation allowance has been established against all net deferred tax assets as of December 31, 2012 and December 31, 2011 based on estimates of recoverability. While the Company has optimistic plans for its business and has recently achieved profitability, it determined that such a valuation allowance was necessary given the uncertainty with respect to future operations.

The Company has net operating loss carry-forwards totaling approximately $1,118,000 which expire between 2013 and 2017 for state purposes and between 2028 and 2032 for federal purposes.