Taxes on Income

12 Months Ended

Dec. 31, 2011

Taxes on Income

Note 3 - Taxes on Income

Income tax expense is $-0- for both 2011 and 2010, including $-0- in current taxes and $-0- in deferred taxes for both 2011 and 2010.

A reconciliation of income tax expense recognized to income taxes at statutory rates is as follows:

	Year Ended December 31,
	2011			2010
Income tax at statutory rates		(34.0	)%		(34.0	)%
Change in valuation allowance		34.0	%		34.0	%
Total income tax expense rate		0.0	%		0.0	%

At December 31, 2011, the Company has net operating loss carryforwards (“NOLs”) of approximately $256,000 that can be used to offset future taxable income, and such NOLs result in a gross deferred tax asset of approximately $87,000 at that date. These NOLs expire in varying amounts through 2031. Realization of these NOLs is subject to annual limitations under current IRS regulations pursuant to change in control provisions and is dependent on the existence of future taxable income. At December 31, 2011 and 2010, a valuation allowance has been recognized for the entire amount of the Company's net deferred tax asset. The valuation allowance increased by $8,000 in 2011, increasing from $79,000 at December 31, 2010 to $87,000 at December 31, 2011.