INCOME TAXES

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

NOTE J - NCOME TAXES

The components of the Company's income tax expense (benefit) are as follows:

	Years ended
	December 31, 2011		December 31, 2010
Current benefit	$	-	$	-
Deferred benefit		-		-
Net income tax expense (benefit)	$	-	$	-
The Company's income tax expense (benefit) at the statutory rate was substantially equal to the reported income tax expense (benefit). The Company is only subject to federal income taxes.

At December 31, 2011, the Company's net deferred tax asset consisted of the following:
Net operating loss carry-forward	$	5,629,498
Less valuation allowance		(5,629,498	)
Total	$	-

The Company's net operating loss carryforward for federal income tax purposes was approximately $16,558,319 as of December 31, 2011, expiring beginning in 2022. In accordance with Internal Revenue Code Section 382, the Company may be limited in its ability to recognize the benefit of future net operating loss carry-forwards.  Consequently, the Company did not recognize a benefit from operating loss carry-forwards.

The Company has filed corporate income tax returns through 2010 and has filed an extension for 2011.