Income Taxes (Tables)

12 Months Ended

Aug. 31, 2013

Income Taxes Tables

Benefit (provision) for income taxes

The components of the benefit (provision) for income taxes from continuing operations are as follows:

	For the		For the
	Year Ended		Year Ended
	August 31, 2013		August 31, 2012
Current (benefit) provision: federal	$	-	$	-
Current (benefit) provision: state		-		-
Total current provision		-		-
Deferred (benefit) provision: federal		-		-
Deferred (benefit) provision: state		-		-
Total deferred provision		-		-
Total provision (benefit) for income taxes
from continuing operations	$	-	$	-

Deferred tax assets and deferred tax liabilities

Significant items making up the deferred tax assets and deferred tax liabilities are as follows:

	August 31, 2013			August 31, 2012
Long-term deferred taxes:
Operating loss carryforwards-federal	$	632,000		$	598,000
Operating loss carryforwards-state		131,000			124,000
Total deferred taxes		763,000			722,000
Less: valuation allowance		(763,000	)		(722,000	)
Net deferred tax assets	$	-		$	-

Unused net operating loss carryforwards

The amounts and corresponding expiration dates of the Company’s unused net operating loss carryforwards are shown in the following table as of August 31, 2013:

Year	Federal		Georgia
2014	$	43,000	$	-
2015		389,000		89,000
2016		218,000		129,000
2017		187,000		207,000
2018		157,000		175,000
2024		321,000		340,000
2025		117,000		168,000
2026		72,000		165,000
2027		32,000		141,000
2028		86,000		134,000
2029		124,000		126,000
2030		139,000		139,000
2031		135,000		135,000
2032		115,000		115,000
2033		123,000		123,000
	$	2,258,000	$	2,186,000

Effective income tax (benefit) rate continuing operations

The Company’s effective income tax (benefit) rate for continuing operations differs from the statutory federal income tax benefit rate as follows:

	For the			For the
	Year Ended			Year Ended
	August 31, 2013			August 31, 2012
Federal tax benefit (provision) rate		28	%		28	%
State tax benefit (provision) rate		4	%		4	%
Temporary differences		4	%		4	%
Permanent differences		0	%		0	%
Change in valuation allowance		-36	%		-36	%
Effective Income tax (benefit) provision rate
from continuing operations		0	%		0	%