INCOME TAXES

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 4 INCOME TAXES

At December 31, 2011, the Company has a federal net operating loss carry-forward of approximately $795,000 available to offset future taxable income. The Company’s remaining net operating loss carry-forward will expire between 2012 and 2031. Utilization of future net operating losses may be limited due to ownership changes under Section 382 of the Internal Revenue Code.

The valuation allowance at December 31, 2011 was $278,000 a decrease of $59,469 from $337,469 at December 31, 2010, due to the expiration of net operating losses offset by the current period net loss. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of December 31, 2011.

In 2009, the Company lost its State of Connecticut NOL carryforwards of approximately $544,000 as a result of redomiciling from Connecticut to Florida. During 2010, the State of Florida taxable income was approximately $244,000 resulting in a state income tax of approximately $13,400.

In 2010, the Company used approximately $235,000 of its Federal NOL to offset its 2010 federal taxable income. This resulted in a decrease of the Company's Federal NOL carryforward to $993,000 as of December 31, 2010.

The effects of temporary differences that gave rise to significant portions of deferred tax assets at December 31, 2011 and 2010 are as follows:

	December 31,			December 31,
	2011			2010
Net operating loss carry forward	$	278,000		$	337,469
Valuation allowance		(278,000	)		(337,469	)
Net deferred tax asset	$	—		$	—

There was no Federal income tax expense for the years ended December 31, 2011 and 2010 due to the Company's net losses. For the years ended December 31, 2011 and 2010 the state income tax expense was zero and $13,411, respectively.

The Company's tax expense differs from the "expected" tax expense for the years ended December 31, 2011 and 2010, (computed by applying the Federal Corporate tax rate of 35% to income before taxes and 5.5% for State Corporate taxes, the blended rate used was 38.67%), as follows:

	2011			2010
Current federal tax expense (benefit)		(28,000	)		93,638
State tax rate difference, net of federal benefit		(3,000	)		(182	)
Expired net operating loss carryforwards		94,000			—
Change in valuation allowance		(63,000	)		(80,045	)
Income tax expense(Benefit)		—			13,411

The Company includes interest and penalties arising from the underpayment of income taxes in the consolidated statements of operations in general and administrative expenses.

The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended December 31, 2011, 2010 and 2009.