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Income Taxes

12 Months Ended

Jun. 30, 2013

NOTE 7

INCOME TAXES

No provision was made for federal income tax since the Company has significant net operating losses. For the year ended June 30, 2013 and from inception to June 30, 2012, the Company had operating losses of approximately $420,000 and $27,000. The net operating loss carry-forwards may be used to reduce taxable income through the year 2033. The principal difference between the net operating loss for book purposes and income tax purposes results from contributed services by affiliates. The availability of the Company’s net operating loss carry-forwards are subject to limitation if there is a 50% or more positive change in the ownership of the Company’s stock.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax liabilities and assets as of June 30, 2013 and 2012, are as follows:

2013: Deferred tax assets:
Federal net operating loss	$	142,000
State net operating loss		21,000
Total deferred tax assets		163,000
Less valuation allowance		(163,000	)
	$	--

2012: Deferred tax assets:
Federal net operating loss	$	4,000
State net operating loss		1,000
Total deferred tax assets		5,000
Less valuation allowance		(5,000	)
	$	--

The Company has provided a 100% valuation allowance on the deferred tax assets at June 30, 2013 and 2012, to reduce such asset to zero, since there is no assurance that the Company will generate future taxable income to utilize such asset. Management will review this valuation allowance requirement periodically and make adjustments as warranted.

The reconciliation of the effective income tax rate to the federal statutory rate for the periods ended June 30, 2013 and 2012 is as follows:

Federal income tax rate	(34.0	)%
State tax, net of federal benefit	(5.0	)
Increase in valuation allowance	39.0
Effective income tax rate	-	%

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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