INCOME TAXES

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 9: INCOME TAXES

The Company has incurred aggregate cumulative net operating losses of approximately $611,222 for income tax purposes as of December 31, 2013. The net operating loss carries forward for United States income taxes, which may be available to reduce future years’ taxable income. These carry forwards will expire, if not utilized, starting in 2033. Management believes that the realization of the benefits from these losses appears not more than likely due to the Company’s limited operating history and continuing losses for United States income tax purposes. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset to reduce the asset to zero. Management will review this valuation allowance periodically and make adjustments as warranted.

The Company’s income tax expense (benefit) differs from the “expected” tax expense for Federal income tax purposes computed by applying a Federal corporate tax rate of 15% to loss before income taxes as follows:

	Year ended
	December 31, 2013
U.S. “expected” income tax	$	(242,752	)
State income tax		(89,009	)
Share based compensation		100,891
Contributed services		60,672
Amortization of debbt premium		43,665
Other		1,233
Change in valuation allowance		125,300
Total provision for income taxes	$	-

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at December 31, 2013 are as follows:

Deferred tax assets:	December 31, 2013
Net operating loss carry forward	$	125,300
Total gross deferred tax assets		125,300
Less valuation allowance		(125,300	)
Net deferred tax assets	$	-

The valuation allowance at December 31, 2013 was $125,300.  The increase during 2013 was $125,300.

The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for unrecognized tax benefits. As of December 31, 2013, tax years 2013 and 2012 remain open for IRS audit. The Company has received no notice of audit from the Internal Revenue Service for any of the open tax years. 

The Company filed Form 1065 in 2012 in which all losses passed through to the partners, therefore, there was no net operating loss recorded for the year ended December 31, 2012.