Income Taxes Disclosure

3 Months Ended

Jun. 30, 2014

Notes

Income Taxes Disclosure

NOTE 7 INCOME TAXES

At December 31, 2013, the Company had federal and state net operating loss carry forwards of approximately $152,740,402 that expires in 2033.

Due to operating losses, there is no provision for current federal or state income taxes for the period ended December 31. 2013 or 2012. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal or state income tax purpose.

The Company's deferred tax asset at December 31, 2013 consists of a net operating loss calculated using federal and state effective tax rates equating to approximately $59,568,000 less a valuation allowance in the amount of approximately $59,568,000. Because of the Company's lack of earning history, the deferred tax asset has been fully offset be a valuation allowance. The measurement valuation allowance increased by $1,076,853 and $6,826,475 during the 2013 and 2012 periods respectively.

The Company's total deferred tax asset as of December 31, 2013 is as follows:

Deferred tax asset - gross	$59,568,000
Valuation allowance	$59,568,000
Net deferred tax used	--

The reconciliation of income taxes computed at the federal and state statutory income tax rate to total income taxes for the periods ended December 31, 2013 and 2012 is as follows:

	2013	2012
Income tax computed at the federal statutory rate	34%	34%
Income tax computed at the state statutory rate	5%	5%
Valuation allowance	(39%)	(39%)
Total deferred tax asset	0%	0%