Income Taxes

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Income Taxes

NOTE 5 — INCOME TAXES

The Company has cumulative net operating tax loss carryover (the “NOL”) of approximately $2.4 million at March 31, 2012, which are not likely to be fully realized and consequently a full valuation allowance has been established relating to this deferred tax assets. The final portion of the NOL will expires in 20 years.

The Company has foreign tax credit carryover of approximately (the “FTC”) $33,000 at March 31, 2012. The final portion of the FTC will expire in 10 years.

Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts and are based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. The deferred income tax asset related to the above noted NOL in the amount of approximately $2.4 million has been reduced by a related allowance of equal amount at December 31, 2011.

Income/(Loss) before Income Taxes for the three months ended March 31 were as follows:

	2012			2011
United States	$	(74,425	)	$	(63,293	)
Taiwan		(190,719	)		118,123
Total Income (Loss) before Tax	$	(293,930	)	$	54,830

Provisions for Income Taxes for the three months ended March 31 were as follows:

	2012		2011
United States	$	—	$	—
Taiwan		—		24,194
Total Tax Expense	$	—	$	24,194

Reconciliations of statutory rates to effective tax rates for the three months ended March 31 were as follows:

	2012
Statutory US Tax Rate		39.0%
Foreign Tax Rate		17.0%
State Income Tax Rate Effected		0.0%
Foreign Tax Credit		-17.0%
Net Operating Loss Carryforward		-39.0%
Effective Worldwide Tax Rate		0.0%