INCOME TAXES

12 Months Ended

Dec. 31, 2011

INCOME TAXES

INCOME TAXES

10.INCOME TAXES:

As of December 31, 2011the Company had deferred tax assets resulting primarily from net operating loss carry forwards of approximately $29,250,000, which are available to offset future taxable income, if any, through 2031.  As utilization of the net operating loss carryforwards is not assured, a 100% valuation allowance has been provided.

The components of the net deferred tax assets are as follows:

December 31,	2011	2010
Net operating loss carryforwards	$ 9,945,000	$ 9,890,000
Valuation allowance	(9,945,000)	(9,890,00)
Net deferred tax assets	$         - 0 -	$         - 0 -

The reconciliation of the effective income tax rate to the federal statutory rate are as follows:

Year ended December 31,	2011	2010
Federal statutory tax rate	34%	34%
Valuation allowance on net operating carryforwards	(34)	(34)
Effective income tax rate	- 0 - %	- 0 - %