INCOME TAXES

12 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Note 5. INCOME TAXES

The income tax provision consists of the following for the years ended March 31, 2012 and 2011:

	2012		2011
Current expense:
Federal	$	-	$	-
State (tax on capital) – Est. Taxes Paid		-		1,000
Total current		-		1,000
Deferred expense:
Federal		-		-
State		-		-
Total deferred		-		-
Total tax provision	$	-	$	1,000

At March 31, 2012 and 2011, there were no net deferred tax assets or liabilities recognized for taxable temporary differences.

At March 31, 2012, the Company had a net operating loss carry-forward for income tax reporting purposes of approximately $1,082,333 to be offset against future taxable income through 2030, resulting in a change in the valuation allowance for the years ended March 31, 2012, and 2011 of  ($617,174) and ($4,016,193), respectively. Current tax laws limit the amount of loss available to be offset against taxable future taxable income when a substantial change in ownership occurs.  Therefore, the amount available to offset future taxable income may be limited.  No tax benefit has been reported in the financial statements, because the Company believes there is a 50% or greater chance the carry-forwards will expire unused.  Accordingly, the potential tax benefits of the loss carry-forward are offset by a valuation allowance of the same amount.  As of March 31, 2012, approximately $680,000 in net operating losses have expired.  No tax benefits have been recognized in these financial statements.  Provisions for any deferred federal and state tax liabilities are immaterial to these financial statements.

	March 31,
	2012			2011
Net Operating Losses	$	1,082,333		$	1,699,507
Valuation Allowance		(1,082,333	)		(1,699,507	)
	$	-0-		$	-0-