INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2014

INCOME TAXES (Tables)

Operating Loss Carry Forwards

As of December 31, 2013, the Company had a net operating loss carry forward for income tax reporting purposes of approximately $3,800,000 that may be offset against future taxable income through 2033. Current tax laws limit the amount of loss available to be offset against 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 carryforwards are offset by a valuation allowance of the same amount.

	2013			2012
Net Operating (Profit) Losses	$	1,292,000		$	1,564,000
Valuation Allowance		(1,292,000	)		(1,564,000	)
	$	-		$	-

Provision for income taxes differ from the amount computed

The provision for income taxes differ from the amount computed using the federal US statutory income tax rate as follows:

	2012			2011
Provision (Benefit) at US Statutory Rate	$	247,000		$	(206,000	)
State Income Tax		-
Depreciation and Amortization		(41,000	)		(68,000	)
Accrued Officer Compensation		-			-
Non-Deductible Stock Based Compensation		7,000			12,000
Other Differences		59,000			24,000
Increase (Decrease) in Valuation Allowance		(272,000	)		238,000
Income Tax Provision (Benefit)	$	-		$	-