Income Taxes

12 Months Ended

Dec. 31, 2013

Income Taxes

Income Taxes

NOTE 7 - INCOME TAXES

	2013			2012
Net loss before taxes	$	(402,608	)	$	(327,357	)
	$	—		$	—

A reconciliation of the expected income tax expense, computed by applying a 35% U.S. Federal corporate income tax rate to income before taxes to income tax expense is as follows:

	2013			2012
Expected income tax expense (recovery)	$	(141,000	)	$	(115,000	)
Share-based payments		96,000			69,000
Interest		5,100			5,000
Change in valuation allowance		39,900			41,000
	$	—		$	—

At December 31, 2013 and 2012, the Company had available a net-operating loss carry-forward for Federal tax purposes of approximately $318,000 and $204,000, respectively, which may be applied against future taxable income, if any, at various times through 2033. Certain significant changes in ownership of the Company may restrict the future utilization of these tax loss carry-forwards. At December 31, 2013, the Company has a deferred tax asset of $111,900 representing the benefit of its net operating loss carry-forward. The Company has not recognized the tax benefit because realization of the tax benefit is uncertain and thus a valuation allowance has been fully provided against the deferred tax asset.

The Company recognizes interest and penalties, if any, related to uncertain tax positions in general and administrative expenses. No interest and penalties related to uncertain tax positions were accrued at December 31, 2013 and 2012.

The tax years 2013, 2012, 2011, 2010 and 2009 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company expects no material changes to unrecognized tax positions within the next twelve months.