INCOME TAXES

6 Months Ended

Jun. 30, 2013

INCOME TAXES

INCOME TAXES

6.

INCOME TAXES

The Company has incurred operating losses of $3,540,654 which, if unutilized, will begin to expire in 2027. Future tax benefits, which may arise as a result of these losses, have not been recognized in these financial statements, and have been offset by a valuation allowance. Details of future income tax assets are as follows:

		June 30, 2013
Future income tax assets:
Net operating loss from October 27, 2008 (inception) to June 30, 2013)	$	3,540,654
Statutory tax rate (combined federal and state)		40.4%
Non-capital tax loss		1,431,209
Valuation allowance		(1,431,209)
	$	-

The potential future tax benefits of these losses have not been recognized in these financial statements due to uncertainty of their realization. When the future utilization of some portion of the carry forwards is determined not to be "more likely than not," a valuation allowance is provided to reduce the recorded tax benefits from such assets.