Note 8 - Provision For Income Taxes

12 Months Ended

Dec. 31, 2012

Notes

Note 8 - Provision For Income Taxes

NOTE 8 – PROVISION FOR INCOME TAXES

The Company has operating loss carry forwards of approximately $9,967,000 at December 31, 2012. The operating loss carry forwards expire from 2021 through 2032. Substantially all of the operating loss carry forwards are limited in the availability for use by the Company. The net deferred tax asset consisted of the following at December 31, 2012 and 2011:

Deferred Tax Asset	2012	2011
Operating loss carry forwards	$ 4,383,290	$   3,853,118
Depreciation	-	-
Total Deferred Tax Asset	4,383,290	3,853,118
Valuation Allowance	(4,383,290)	(3,853,118)
Net Deferred Tax Asset	$                 -	$                    -

During 2012 and 2011, the valuation allowance increased by $530,172 and $976,378, respectively, principally due to the operating losses.

The following is a reconciliation of the amount of tax benefit that would result from applying the federal statutory rate to pretax loss from continuing operations with the benefit from income taxes attributable to continuing operations:

	2011	2010
Income tax (benefit) at statutory rate (34%)	$(530,172)	$   (976,378)
Benefit of operating loss carry-forwards	-	-
Expenses not currently deductible	-	-
Change in valuation allowance	530,172	976,378
State tax (benefit), net of federal tax effect	-	-
Net Benefit (Expenses) From Income Taxes	$                  -	$                      -