INCOME TAXES

12 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

INCOME TAXES

The Company’s provision for income taxes was $-0- for the years ended June 30, 2012 and 2011, respectively, since the Company incurred taxable losses and deferred tax assets recognized are offset by a full valuation allowance in each fiscal year.

ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In the Company’s opinion, it is uncertain whether they will generate sufficient taxable income in the future to fully utilize the net deferred tax asset. Accordingly, a full valuation allowance equal to the deferred tax asset has been recorded. The total deferred tax asset is calculated by multiplying a 39% marginal tax rate by the cumulative Net Operating Loss (“NOL”).

At June 30, 2012, the Company has available $467,420 of NOLs which expire in various years beginning in 2027 and carrying forward through 2032.

As discussed in Note 5 to these financial statements, a change in ownership of more than 50% occurred during the year ended June 30, 2012. Therefore, the annual utilization of the Company’s NOLs is subject to certain limitations under Section 382 of the Internal Revenue Code, as amended, and other limitations under state tax laws. The Company is currently in the process of analyzing and calculating these limitations.

The tax effects of significant items comprising the Company's net deferred taxes as of June 30, 2012 and 2011 were as follows: 

	2012			2011
Cumulative NOL	$	467,420		$	383,590
Deferred Tax assets:
Net operating loss carry forwards		182,485			149,791
Valuation allowance		(182,485	)		(149,791	)
	$	—		$	—

The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 39% to net loss before provision for income taxes for the following reasons:

	2012			2011
Income tax benefit at U. S. federal statutory rates:	$	(32,694	)	$	(36,869	)
Change in valuation allowance		32,694			36,869
	$	—		$	—

The Company files federal and Nevada income tax returns subject to statutes of limitations.   The years ended June 30, 2012, 2011, and 2010 are subject to examination by federal and state tax authorities.