NOTE 5 - INCOME TAXES

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

NOTE 5 - INCOME TAXES

NOTE 5 - INCOME TAXES

		2012		2011
Net loss before taxes	$	(525,957)	$	(5,293,741)
Income tax expense charged to loss before taxes	$	-	$	-

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:

		2012		2011
Expected income tax expense	$	(184,000)	$	(1,852,800)
Share-based payments		69,000		1,821,800
Loss on settlement of debt		74,000		-
Change in valuation allowance		41,000		31,000
Total	$	-	$	-

At December 31, 2012 and 2011, the Company had available a net-operating loss carry-forward for Federal tax purposes of approximately $204,000 and $87,600, respectively, which may be applied against future taxable income, if any, at various times through 2031. Certain significant changes in ownership of the Company may restrict the future utilization of these tax loss carry-forwards. At December 31, 2012, the Company has a deferred tax asset of $72,000 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, 2012 and 2011.

The tax years 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.