INCOME TAXES

19 Months Ended

Dec. 31, 2011

INCOME TAXES

10. INCOME TAXES

Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.

The Company currently has net operating loss carry forwards aggregating approximately $8,660,426, which expires through 2031. The Company’s deferred income tax assets have been fully reserved, as follows as of December 31, 2010 and 2011:

	2010			2011
Deferred tax asset	$	2,563,384		$	2,944,545
Valuation allowance for deferred tax assets	($	2,563,384	)	($	2,944,545	)
Net Deferred tax asset	$	-		$	-