Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

Note 7 - Income Taxes

The components of the income tax provision (benefit) for the years ended December 31, 2011 and 2010 are as follows:

	Year ended December 31,
	2011		2010
Current:
Federal	$	-	$	(72,479	)
State		56,487		16,849
Total current		56,487		(55,630	)
Deferred:
Federal		-		-
State		-		-
Total deferred		-		-
Total income tax provision (benefit)	$	56,487	$	(55,630	)

The following table sets forth a reconciliation of the statutory federal income tax for the years ended December 31, 2011 and 2010:

	Year ended December 31,
		2011			2010
Income tax expense computed at statutory rate	$	(119,427	)	$	(307,373	)
Share-based compensation		41,183			277,376
Meals and entertainment		23,703			14,074
Other		167			227
Change in valuation allowance		54,374			15,696
Refund for taxes		-			(72,479	)
Texas margin tax		56,487			16,849
	$	56,487		$	(55,630	)

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 December 31, 2011 and December 31, 2010 are set out below:

	December 31, 2011			December 31, 2010
Deferred Tax Assets:
Net operating loss carryforward	$	496,138		$	481,579
Other		7,942			4,832
Total deferred tax assets		504,080			486,411
Deferred Tax Liabilities:
Depreciation		(305,103	)		(328,155	)
Total deferred tax liabilities		(305,103	)		(328,155	)
Valuation allowance		(198,977	)		(158,256	)
Net deferred tax asset	$	-		$	-

Delta has loss carryforwards totaling $1,459,228 available at December 31, 2011 that may be offset against future taxable income.  If not used, the carryforwards will expire as follows:

Operating Losses
Amount		Expires
$	1,349,528	2029
	66,881	2030
	42,819	2031
$	1,459,228