INCOME TAXES

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

INCOME TAXES

10. INCOME TAXES

At December 31, 2011 and 2010, the components of the Company’s net deferred taxes are as follows:

	2011			2010
Deferred tax assets:
Net operating loss carryforwards	$	2,459,000		$	3,550,000
Stock-based compensation		98,000			108,000
Total deferred tax assets	$	2,557,000			3,658,000
Valuation allowance		(1,977,000	)		(3,629,000	)
Net deferred tax assets		580,000			29,000
Deferred tax liabilities:
Property, equipment and software
development costs		580,000			29,000
Total deferred tax liabilities		580,000			29,000
Net deferred tax asset	$	-		$	-

At December 31, 2011 and 2010, the Company had approximately $12,089,000 and $9,630,000, respectively, of net operating loss carryforwards, which begin expiring in 2023. Realization of the deferred tax asset is dependent on generating sufficient future taxable income. A valuation allowance on the net deferred tax asset has been provided due to the uncertainty of future taxable income.