INCOME TAXES

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

INCOME TAXES

11.  INCOME TAXES

At December 31, 2012 and 2011, the components of the Company’s net deferred taxes are as follows:

	2012			2011
Deferred tax assets:
Net operating loss carry forwards	$	5,191,000		$	2,459,000
Stock-based compensation		84,000			98,000
Total deferred tax assets	$	5,275,000			2,557,000
Valuation allowance		(5,270,000	)		(1,977,000	)
Net deferred tax assets		5,000			580,000
Deferred tax liabilities:
Property, equipment and software
development costs		5,000			580,000
Total deferred tax liabilities		5,000			580,000
Net deferred tax asset	$	-		$	-

At December 31, 2012 and 2011, the Company had approximately $13,757,000 and $12,089,000, 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.