Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

Note 12 - Income Taxes

The components of the income tax provision for the years ended December 31, 2011 and 2010 are as follows:

	Years Ended December 31,
	2011		2010
Current:
Federal	$	-	$	(72,479	)
State		159,555		59,958
Total current		159,555		(12,521	)
Deferred:
Federal		-		-
State		-		-
Total deferred		-		-
Total income tax provision	$	159,555	$	(12,521	)

The following table sets forth a reconciliation of the statutory federal income tax for the years ended December 31, 2011 and 2010:

	Years Ended December 31,
	2011			2010
Income tax expense computed at statutory rate	$	(1,180,297	)	$	(145,795	)
Share-based compensation		447,735			464,434
Meals and entertainment		34,595			27,194
Other		167			227
Change in valuation allowance		697,800			(346,060	)
Refund for taxes		-			(72,479	)
Texas margin tax		159,555			59,958
	$	159,555		$	(12,521	)

The tax effects of the temporary differences between financial statement income and taxable income are recognized as a deferred tax asset and liabilities. Significant components of the deferred tax asset and liability as of December 31, 2011 and December 31, 2010 are set out below:

	December 31, 2011			December 31, 2010
Deferred Tax Assets:
Net operating loss carryforward	$	8,259,614		$	6,432,554
Loss on discontinued operations		18,499			-
Impairment		27,200			-
Other		64,670			51,714
Total deferred tax assets		8,369,983			6,484,268
Deferred Tax Liabilities:
Tax depreciation in excess of books		(365,996	)		(396,218	)
Unrealized gains		(1,285,514	)		(495,321	)
Other		-			(8,458	)
Total deferred tax liabilities		(1,651,510	)		(899,997	)
Valuation allowance		(6,718,473	)		(5,584,271	)
Net deferred tax asset	$	-		$	-

American has loss carry-forwards totaling $24,292,981 available at December 31, 2011 that may be offset against future taxable income.  If not used, the carry-forwards will expire as follows:

Operating Losses
Amount		Expires
$	1,552,323	2018
	1,462,959	2019
	2,086,064	2020
	860,006	2022
	566,409	2023
	1,028,302	2024
	1,551,019	2025
	73,187	2026
	288,855	2027
	3,413,803	2028
	3,981,570	2029
	2,054,779	2030
	5,373,705	2031
$	24,292,981