Income Taxes

9 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Income Taxes

Note 8. Income Taxes

At December 31, 2011, the Company estimated that it had approximately $38,700,000 of net operating loss carry forwards, which if unused will expire through 2031. Of the $ 38.7 million, approximately $27.5 million is subject to limitations under IRC Section 382 due to owner shifts during the period.

The Company and some of its operating entities have undergone tax status changes and is delinquent in filing certain of its income and payroll tax returns in certain jurisdictions, but the Company believes it has sufficient loss carryforwards available for any income tax liability that may be due and has set aside sufficient reserves in accounts payable, accrued expenses and other liabilities for any payroll tax obligations.