Note 2 - Income Taxes

Corporate tax rates range from 10% to 34%. The Company provided a valuation allowance equal to the deferred tax amounts resulting from the tax losses in the United States, as it is not likely that they will be realized.

The U.S. tax losses can be carried forward for 15 to 20 years to offset future taxable income and expire in years 2020 to 2029.

The provision for income taxes for the nine months ended September31, 2013 and 2012 are summarized as follows:

	2013			2012
	(In thousands)

Income tax – current		$	-		$	-
Income tax – deferred			-			-
		$	-		$	-

The Company has deferred tax assets (liabilities) at September 31, 2013and December 31, 2012 as follows:

	2013				2012
	(In thousands)

Net operating loss carryforwards		$	-			$	-
Valuation allowance			(-	)			(-	)
		$	-			$	-