INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Provision for income taxes

The provision for income taxes on the statements of operations consists of $-0- and $-0- for the years ended December 31, 2012 and 2011, respectively. Deferred tax assets are comprised of the following at December 31:

	2012			2011
Net operating loss carryforward	$	10,100,000		$	9,552,000
Temporary differences		5,621,000			5,277,000
Less valuation allowance		(15,721,000	)		(14,829,000	)
Deferred tax asset, net		-			-

Provision for income taxes differs by applying the U.S. federal statutory tax rate

For December 31, 2012 and 2011, the provision for income taxes differs from the amount computed by applying the U.S. federal statutory tax rate (34% in 2012 and 2011) to income taxes as follows:

	2012			2011
Tax benefit computed at 34%	$	344,000		$	615,000
Change in valuation allowance		(892,000	)		(970,000	)
Change in carryovers and tax attributes		548,000			355,000
Income tax provision		-			-