5. INCOME TAXES

9 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

5. INCOME TAXES

For income tax purposes the Company has net operating loss carry forwards of approximately 24 million as of December 31, 2011 that may be used to offset future taxable income.  In the instance of future corporate acquisitions, the net operating losses may be used to offset the future taxable income of a qualifying subsidiary corporation which meets IRS regulations governing such situations.  The losses have accumulated since 1998 and they will start to expire in 2018.  Due to continuing losses from operations, the Company has assigned a full valuation allowance against its deferred tax assets.