14. Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

14. Income Taxes

14. Income Taxes

Current or future U.S. federal income tax provision or benefits have not been provided for any of the periods presented because the Company has experienced operating losses since inception. Under ASC 740 “Income Taxes,” when it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. The Company has provided a full valuation allowance on the net future tax asset, consisting of net operating loss carry forwards, because management has determined that it is more likely than not that they will not earn income sufficient to realize the future tax assets during the carry forward period.

The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the nine month period ended September 30, 2013, applicable under ASC 740. As a result of the adoption of ASC 740, the Company did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the balance sheet.

The components of the Company’s future tax asset as at September 30, 2013, September 30, 2012 and December 31, 2012 are as follows:

	September 30, 2013			September 30, 2012			December 31, 2012
Net operating loss carry forward	$	11,038,216		$	9,871,085		$	10,303,902
Valuation allowance		(11,038,216	)		(9,871,085	)		(10,303,902	)
Net future tax asset	$	—		$	—		$	—

A reconciliation of income taxes computed at the 35% statutory rate to the income tax recorded is as follows:

	September 30, 2013			September 30, 2012			December 31, 2012
Tax at statutory rate	$	257,010		$	368,038		$	519,529
Valuation allowance		(257,010	)		(368,038	)		(519,529	)
Net future tax asset	$	—		$	—		$	—

The Company did not pay any income taxes during the nine month period ended September 30, 2013, September 30, 2012 and the year ended December 31, 2012.

The net federal operating loss carry forwards will expire in 2023 through 2032. This carry forward may be limited upon the consummation of a business combination under IRC Section 381.