Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes [Abstract]

Income Taxes

Note 7 - Income Taxes

The components of the income tax provision for the three and six months ended June 30, 2011 and 2010 are as follows:

	Three Months ended June 30,				Six Months ended June 30,
	2011		2010		2011		2010
Current:
Federal	$	-	$	-	$	-	$	-
State		4,861		4,878		11,237		10,276
Total current		4,861		4,878		11,237		10,276
Deferred:
Federal		-		-		-		-
State		-		-		-		-
Total deferred		-		-		-		-
Total income tax provision	$	4,861	$	4,878	$	11,237	$	10,276

The following table sets forth a reconciliation of the statutory federal income tax for the three and six months ended June 30, 2011 and 2010:

	Three Months ended June 30,						Six Months ended June 30,
	2011			2010				2011			2010
Income tax expense (benefit) computed at statutory rate	$	(786	)	$	(44,095	)	$	7,060		$	(269,285	)
Share-based compensation		-			3,740			43,350			291,975
Meals and entertainment		1,837			7,895			5,092			9,572
Other		-			210			-			227
Change in valuation allowance		(1,051	)		32,250			(55,502	)		(32,489	)
Texas Margin Tax		4,861			4,878			11,237			10,276
	$	4,861		$	4,878		$	11,237		$	10,276

The tax effects of the temporary differences between financial statement income and taxable income are recognized as a deferred tax asset and liabilities. Significant components of the deferred tax asset and liability as of June 30, 2011 and December 31, 2010 are set out below:

	June 30, 2011			December 31, 2010
Deferred Tax Assets:
Net operating loss carryforward	$	403,337		$	478,916
Book depreciation in excess of tax		12,915			25,830
Other		2,465			4,832
Total deferred tax assets		418,717			509,578
Deferred Tax Liabilities:
Unrealized gains on trading securities		-			-
Total deferred tax liabilities		-			-
Valuation allowance		(418,717	)		(509,578	)
Net deferred tax asset	$	-		$	-

Delta has loss carryforwards totaling $1,245,334 available at June 30, 2011 that may be offset against future taxable income.  If not used, the carryforwards will expire as follows:

Operating Losses
Amount		Expires
$	1,186,286	2029
	59,048	2030
$	1,245,334