INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES [Abstract]

Schedule of Income Tax Benefit (Provision)

The income tax benefit (provision) consists of the following:

	2012	2011
Current	$ (1,563,000)	$ (895,000)
Deferred	(576,000)	(602,000)
Change in valuation allowance	2,139,000	1,497,000
	$ -	$ -

Schedule of Effective Income Tax Reconciliation

The reconciliation of the statutory federal rate to the Company's effective Income tax rate is as follows:

	2012		2011
	Amount	%	Amount	%
Income tax benefit at U.S.
federal income tax rate	$ (1,549,000)	(34)	$ (1,184,000)	(34)
State tax, net of federal tax effect	(410,000)	(9)	(313,000)	(9)
Non-deductible share-based compensation	(180,000)	(4)	-	-
Change in valuation allowance	2,139,000	47	1,497,000	43
	$ -	-	$ -	-

Schedule of Deferred Tax Assets

The components of deferred tax assets as of December 31, 2012, and December 31, 2011 are as follows:

	2012	2011
Deferred tax asset for NOL carryforwards	$ 8,647,000	$ 7,084,000
Share-based compensation	2,966,000	2,390,000
Accrued expenses	17,000	17,000
Valuation allowance	(11,630,000)	(9,491,000)
	$ -	$ -