5. Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Taxes

5. Income Taxes

Income tax benefit reconciled to tax calculated at statutory rates is as follows:

	2012			2011
Federal tax (benefit) at statutory rate	$	(564,259	)	$	(665,257	)
Expiration of net operating loss carryforwards		533,950			1,794,072
Expiration of tax credits		––			33,000
Change in valuation allowance		30,403			(1,162,821	)
Other		(94	)		1,006
Provision for income taxes, net	$	––		$	––

At December 31, 2012 and 2011, the components of the Company’s deferred taxes are as follows:

	2012			2011
Deferred tax assets (liabilities)
Net operating loss carryforwards	$	7,824,444		$	8,209,728
Accrued compensation		105,767			29,431
Depreciation		4,253			173
Stock-based compensation		350,401			276,929
Accrued related party interest		938,193			688,827
Other		20,082			7,649
Total		9,243,140			9,212,737
Less:  Valuation allowance		(9,243,140	)		(9,212,737	)
Net deferred tax asset	$	––		$	––

The Company has the following net operating loss tax carryforwards available at December 31, 2012:

Year of Expiration	Net Operating Losses
2013	$	1,425,000
2014		1,234,000
2020		2,849,000
2021		4,168,000
2023		1,217,000
2024		646,000
2025		589,000
2026		873,000
2027		2,607,000
2028		2,512,000
2029		2,196,000
2030		1,232,000
2031		1,028,000
2032		437,000
Total	$	23,013,000

In the event of a significant change in the ownership of the Company, the utilization of such loss and tax credit carryforwards could be substantially limited.