INCOME TAX

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 9 - INCOME TAX

The Company’s income tax benefit differs from the expected income tax benefit by applying the U.S. Federal statutory rate of 34% to net income (loss) as follows:

	DECEMBER 31,
	2011			2010
Income tax benefit at statutory rate of 34%	$	267,000		$	329,000
Change in valuation allowance		(267,000	)		(329,000	)
	$	-		$	-

Deferred tax assets consist of:

	DECEMBER 31,
	2011			2010
Deferred tax assets (liabilities):
Net operating loss carryforward		7,286,000			7,020,000
		7,286,000			7,020,000
Valuation allowance (see Note 2)		(7,286,000	)		(7,020,000	)
	$	-		$	-

For the year ended December 31, 2011, the Company had approximately $21,400,000 of federal and state net operating loss carryovers (“NOLs”) which begin to expire in 2026. The NOLs may be subject to limitation under Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under regulations.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, the Company has established a full valuation allowance against all of the deferred tax assets for every period because it is more likely than not that all of the deferred tax assets will not be realized.

We are currently open to audit for all years ended December 31, 2001 to present because of our large NOL carryforwards. However, we are only open to additional tax assessments under the Internal Revenue Code statute of limitations for the years ended December 31, 2008 to present; however, we do not currently have any ongoing tax examinations.