INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Computation of Tax Expense Applying Federal Corporate Tax Rate

The Company’s tax expense differs from the “expected” tax expense for the periods ended December 31, 2012 and 2011, computed by applying the Federal Corporate tax rate of 34% to loss before taxes, as follows:

	2012			2011
Computed "expected" tax benefit	$	(800,084	)	$	(16,579	)
State tax benefit, net of federal effect		(166,285	)		(2,124	)
Change in valuation allowance		480,742			(98,800	)
Non-deductible expenses		(435,030	)		147,313
	$	(920,657	)	$	29,810

Significant Portions of Deferred Tax Assets and Liabilities

For the periods ended December 31, 2012 and 2011, the tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities were as follows:

	2012			2011
Deferred tax assets (liabilities)
Intangible assets	$	(8,046,564	)	$	(8,153,358	)
Property and equipment		634,354			634,354
Net operating loss carryforwards		20,699,678			20,376,785
Contribution and other carryforwards		292,692			241,637
Inventory and accounts receivable reserves		139,999			139,999
Valuation allowance		(13,720,159	)		(13,239,417	)
Net deferred tax assets	$	-		$	-