Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes Tables

Deferred income tax assets

Significant components of the Company’s are as follows:

	12/31/2012			12/31/2011
Net operating loss carryforwards	$	4,694,494		$	4,406,441
Accounts payable and accrued expenses		92,891			234,390
Equity based expenses		1,700,507			1,460,400
Accounts receivable and prepaid expenses		(76,899	)		(36,972	)
Deferred taxes		6,410,993			6,064,259
Valuation allowance		(6,410,993	)		(6,064,259	)
Net Deferred Income Tax Assets	$	-		$	-

Income Taxes

Reconciliation of the effective income tax rate to the U.S. statutory rate is as follows:

	12/31/2012			12/31/2011
Book loss		-34.00	%		-34.00	%
Meals and entertainment		0.02			0.03
Debt discount accretion		18.47			14.84
Net operating loss reduction due IRC 382		10.37			-
Change in valuation allowance		5.14			19.13
Effective income tax rate		0.00	%		0.00	%