INCOME TAXES

3 Months Ended

Mar. 31, 2013

Income Taxes

NOTE 9 - INCOME TAXES

Potential benefits of income tax losses and other tax assets are not recognized in the accounts until realization is more likely than not. As of March 31, 2013 and December 31, 2012, the Company has net operating losses carryforwards of approximately $1,310,000 and $1,262,000, respectively, for tax purposes in various jurisdictions subject to expiration as described below. Pursuant to ASC 740, Income Taxes, the Company is required to compute tax asset benefits for net operating losses carried forward and other items giving rise to deferred tax assets. Future tax benefits which may arise as a result of these losses and other items have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these items. 

The actual income tax provisions differ from the expected amounts calculated by applying the combined income tax statutory rates applicable in each jurisdiction to the Company’s loss before income taxes and non-controlling interest. The components of these differences are as follows:

	Three Months Ended March 31,
	2013			2012
Corporate income tax rate		34%			34%
Expected income tax (recovery)	$	(70,818	)	$	(81,163	)
Non-deductible stock based compensation		37,400			47,600
Change in valuation allowance		33,418			33,563
State income tax net of federal benefit		-			-
Income tax (benefit) expense	$	-		$	-

The Company's tax-effected deferred income tax assets and liabilities are estimated as follows:

	March 31, 2013			December 31, 2012
Net operating loss carryforward	$	445,332		$	429,039
Accrued expenses		98,346			81,220
Total deferred assets		543,678			510,259
Less: valuation allowance		(543,678	)		(510,259	)
Net deferred tax assets	$	-		$	-

The Company has approximately $1,310,000 of net operating lossses carried forward for United States income tax purposes which will expire, if not utilized, in 2030.