INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2012

INCOME TAXES

Schedule of sources and tax rates of the differences between statutory federal income tax rate and effective income tax rate

	2012		2011
Income tax at the federal statutory rate	34.0	%	34.0	%
State income tax, net of federal tax	1.4		6.7
Non-deductible dues and entertainment	(0.5	)	0.5
Non-deductible interest and expense on 8% Note	(12.5	)	—
(Reduction) increase in deferred tax asset	(2.0	)	9.8
Share-based compensation	(1.3	)	—
Non-deductible compensation	—		0.1
Non-deductible basis in other operating property and equipment	(0.7	)	—
Non-deductible stock warrants	(0.9	)	—
Non-deductible Merger costs	(20.1	)	—
	(2.6	)%	51.1	%