Note 12 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Tax Provision Benefit

The tax provision (benefit) for the years ended December 31, 2012 and 2011 consists of the following:

	December 31,
	2012			2011
Current					–
Deferred		(129,588	)		(338,390	)
The components of the deferred tax assets (liability) as of:
Net operating loss carryforward		7,486,772		$	7,505,059
Stock base compensation		430,305			139,853
Executive compensation		40,200			59,800
Total Deferred tax Asset		7,957,277			7,704,712
Valuation allowance for Deferred tax asset		7,957,277			(7,704,712	)
Deferred tax asset		–			–
Deferred tax liability:
Intangible Assets		(94,184	)		(223,771	)
Sec 481c		–			–
Net deferred tax long term		(94,184	)		(223,771	)
Net deferred tax	$	(94,184	)	$	(223,771	)

Provision for income taxe

The provision for income taxes reported for the year ended December 31, 2012 and 2011.

	December 31,
	2012			2011
Provision (benefit) for taxes using statutory rate	$	(235,236	)	$	(1,939,044	)
state taxes, net of federal tax benefit		12,838			646,348
Permanent differences:
None deductable expense		92,810			2,247,002
Provision (Benefit) for income taxes	$	(129,588	)	$	(338,390	)