Income Taxes

12 Months Ended

Dec. 31, 2013

NOTE H - INCOME TAXES

At December 31, 2013, the Company had an unused net operating loss carryforward of approximately $5,742,000 for income tax purposes, which expires between 2027 and 2033. This net operating loss carryforward may result in future income tax benefits of approximately $1,952,000; however because realization is uncertain at this time, a valuation reserve in the same amount has been established. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of the Company’s deferred tax liabilities and assets as of December 31, 2013 and 2012 are as follows:

	December 31,
	2013			2012
Deferred tax liabilities	$	-		$	-

Deferred tax asset-
Net operating loss carryforward		1,952,000			1,849,000
Valuation allowance		(1,952,000	)		(1,849,000	)
Net deferred tax asset	$	-		$	-

The income tax expense (benefit) differs from the amount computed by applying the United States statutory corporate income tax rate as follows:

	December 31,
	2013			2012
U.S statutory income tax rate		34	%		34	%
Change in valuation allowance of deferred tax assets		(34	%)		(34	%)
Net deferred tax asset		-	%		-	%

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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