XML 63 R13.htm IDEA: XBRL DOCUMENT

Note 9 - Income Taxes

6 Months Ended

Jun. 30, 2013

Note 9 - Income Taxes

Significant components of deferred tax assets are as follows:

	June 30, 2013		December 31, 2012
	June 30, 2013		December 31, 2012

Loss carry forwards	$	2,790,888	$	2,761,612
Other	229,720		229,720
Total deferred tax asset	3,020,608		2,991,332

Valuation allowance	(3,020,608)		(2,991,332)
Total deferred tax asset, net	$	-	$	-

As of June 30, 2013, the Company had approximately $5,100,000 of net operating loss (“NOL”) carryforwards for U.S. federal income tax purposes expiring in 2020 through 2030. In addition, the Company has California state NOL carryforwards of approximately $3,500,000 expiring in 2013 through 2020.

The ability to realize the tax benefits associated with deferred tax assets, which includes benefits related to NOL’s, is principally dependent upon the Company’s ability to generate future taxable income from operations. The Company has provided a full valuation allowance for its net deferred tax assets due to the Company’s net operating losses. The valuation allowance has increased by $29,276 during the six months ended June 30, 2013.

Section 382 of the Internal Revenue Code (“IRC”) imposes limitations on the use of NOL’s and credits following changes in ownership as defined in the IRC. The limitation could reduce the amount of benefits that would be available to offset future taxable income each year, starting with the year of an ownership change.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details