2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Reconciliation of the income (loss) per share

	December 31,
	2012			2011
Numerator:
Income (loss) before extraordinary items	$	(450,571	)	$	179,540
Income from extraordinary items, net of tax		–			–
Net income (loss)	$	(450,571	)	$	179,540
Denominator:
Weighted-average common shares outstanding
Basic		46,043,507			45,150,293
Conversion of preferred rights		–			18,192,859
Diluted		46,043,507			63,343,152
Income (loss) per share
Basic
Income (loss) before extraordinary items	$	(0.01	)	$	0.00
Income from extraordinary items, net of tax		–			–
Net income (loss)	$	(0.01	)	$	0.00
Diluted
Income (loss) before extraordinary items	$	(0.01	)	$	0.00
Income from extraordinary items, net of tax		–			–
Net income (loss)	$	(0.01	)	$	0.00

Income tax expense

	December 31,
	2012		2011
Current	$	6,328	$	30,001
Deferred		–		–
Total	$	6,328	$	30,001

Deferred income tax

	December 31,
	2012			2011
Deferred tax assets - current:
Accrued interest	$	49,846		$	35,239
Accrued compensation		154,142			100,990
		203,988			136,229
Deferred tax assets - long-term:
Net operating loss carryforwards		5,287,836			5,645,717
Total deferred income tax assets		5,491,824			5,781,946
Valuation allowance		(5,491,824	)		(5,781,946	)
Total	$	–		$	–

Reconciliation of provision (benefit) for income taxes provided at the federal statutory rate

	December 31,
	2012			2011
Benefit (provision) for income taxes computed at federal statutory rate	$	151,043		$	(71,244	)
State income taxes, net of federal benefit		14,660			(6,915	)
Other		118,091			331,503
Valuation allowance		(290,122	)		(283,345	)
Provision for Income taxes	$	(6,328	)	$	(30,001	)
Effective tax rate		1.42%			14.32%