NOTE 8 - INCOME TAXES

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Text Block]

NOTE 8 - INCOME TAXES

The income tax provision (benefit) for the years ended December 31, 2011 and 2010 differs from the computed expected provision (benefit) at the federal statutory rate for the following reasons:

	2011			2010
Computed expected income tax provision (benefit)	$	851,053		$	(698,838	)
Increase in allowance for doubtful accounts		-			-
Net operating loss carryforward		826,141			793,726
Increased
Accrued liabilities		40,484			(98,398	)
Allowance for doubtful accounts		(17,000	)		-
Non-deductible meals & entertainment		1,428			815
Depreciation		-0-			2,695
Income tax provision (benefit)	$	-		$	-

The components of the deferred tax assets and (liabilities) as of December 31, 2011 and 2010 were as follows:

	2011			2010
Deferred tax assets:
Temporary differences:
Depreciation	$	-0-		$	(2,180	)
Accrued liabilities		(46,757	)		(871	)
Allowance for bad debt		-0-			(21,200	)
Net operating loss carryforward		15,471,495			14,499,564
Valuation allowance		(15,818,252	)		(14,475,313	)
Net long-term deferred tax asset	$	-		$

The components of the deferred tax (expense) benefit were as follows for the years ended December 31, 2011 and 2010:

	2011			2010
Deferred tax assets:
Accrued expenses	$	47,628		$	115,762
Allowance for bad debt		21,200			-
Accumulated Depreciation		2,180			3,170
Increase in net operating loss carryforward		971,830			933,795
Change in valuation allowance		(1,042,939	)		(1,052,727	)
	$	-		$	-

As of December 31, 2011, the Company has net operating losses carryforwards of approximately $ 33,600,000  expiring in 2012 through 2026.