Note 13 - Income Taxes

12 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 13 – INCOME TAXES

The Company has losses carried forward for income tax purposes for June 30, 2013. There are no current or deferred tax expenses for the period ended June 30, 2013 due to the Company’s loss position. The Company has fully reserved for any benefits of these losses. The deferred tax consequences of temporary differences in reporting items for financial statement and income tax purposes are recognized, as appropriate. Realization of the future tax benefits related to the deferred tax assets is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carryforward period.

Management has considered these factors in reaching its conclusion as to the valuation allowance for financial reporting purposes.

	June 30, 2013			June 30, 2012
Operating loss carry forward		641,844			66,460
Less: stock-based compensation		(231,450	)		-
Net operating loss carry forward		410,394			66,460
Effective Tax Rate		35	%		35	%
Deferred Tax Assets		143,638			23,261
Less: Valuation Allowance		(143,638	)		(23,261	)
Net deferred tax asset	$	0		$	0

The valuation allowance for deferred tax assets as of June 30, 2013 and 2012 was $143,638 and $23,261 respectively. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of June 30, 2013 and 2012, and recorded a full valuation allowance.

Reconciliation between the statutory rate and the effective tax rate is as follows at June 30:

	2013			2012
Federal statutory tax rate		(35.0	)%		(35.0	)%
Permanent difference and other		35.0	%		35.0	%
Effective tax rate		-	%		-	%

The net federal operating loss carry forward will expire between 2029 and 2033. This carry forward may be limited upon the consummation of a business combination under IRC Section 381.