INCOME TAX PROVISION

12 Months Ended

Dec. 31, 2011

INCOME TAX PROVISION

INCOME TAX PROVISION

Note 16 - Income Tax Provision

As of December 31, 2011, the Company had deferred tax assets of approximately $5,029,299, resulting from certain temporary differences and net operating loss ("NOL") carry-forwards of approximately $14,792,056, which are available to offset future taxable income, if any, through 2029.  As utilization of the net operating loss carry-forwards and temporary difference is not considered more likely than not and accordingly, the deferred tax asset has been fully offset by a valuation allowance.

Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability.  The valuation allowance increased approximately $452,212 and $442,081 for the years ended December 31, 2011 and 2010, respectively. Components of deferred tax assets as of December 31, 2011 and 2010 are as follows:

	December 31, 2011			December 31, 2010
Net deferred tax assets - Non-current:
Expected federal income tax benefit from NOL carry-forwards	$	5,029,299		$	4,577,087
valuation allowance		(5,029,299	)		(4,577,087	)
Deferred tax assets, net of valuation allowance	$	-		$	-
The reconciliation of the effective income tax rate to the federal statutory rate
Federal income tax rate		34.0	%		34.0	%
Change in valuation allowance on net operating loss carry-forwards		(34.0	)		(34.0	)
Effective income tax rate		0.0	%		0.0	%