Income Taxes

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Income Taxes

NOTE 9 - Income Taxes

For the six month period ended June 30, 2011, other than nominal taxes due, no additional provision was made for Federal and state income taxes due to the losses incurred during these years. As a result of losses incurred through December 31, 2010, the Company has net operating loss carry forwards of approximately $32.7 million. These carry forwards expire through 2030.

The Company recognized deferred tax assets of approximately $13.3 million at December 31, 2010. The Company is dependent on future taxable income to realize deferred tax assets. Due to the uncertainty regarding their utilization in the future, the Company has recorded a related valuation allowance of $13.3 million of deferred tax assets at December 31, 2010 primarily reflect the tax effect of net operating loss carry forwards.