Income taxes:

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Income taxes:

10.Income taxes:

There is no provision for other income taxes for the three months ended March 31, 2012, because the Company utilized its net operating carry forward for which no benefit was previously recognized. Due to cumulative losses incurred by the Company and its subsidiaries during the prior three years, the Company has concluded that it is not more likely than not that it will realize its net deferred tax asset and, accordingly, has recorded a valuation allowance to fully offset its net deferred tax asset at March 31, 2012, which amounted to $3,997,000.