10. Income Taxes

6 Months Ended

Dec. 31, 2012

Income Taxes

10. Income Taxes

For the three and six months ended December 31, 2012 the Company recorded an income tax provision of $44 to reflect an increase in our deferred tax liability as a result of a tax amortization causing our basis in goodwill being greater than our tax basis in the asset. For the three and six months ended December 31, 2012 and 2011, the Company did not record an income tax benefit because it has incurred taxable losses and has no history of generating taxable income and therefore the Company cannot presently anticipate the realization of a tax benefit on its Net Operating Loss carryforward.  At December 31, 2012 the Company has a Net Operating Loss carryforward of $28,700, which will begin to expire in 2030.  The Company has established a full valuation allowance against its deferred tax assets as of December 31, 2012 and 2011.

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax positions through its income tax expense.

The Company may in the future become subject to federal, state and local income taxation though it has not been since its inception.  The Company is not presently subject to any income tax audit in any taxing jurisdiction.