6. Income taxes:

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Text Block]

6. Income taxes:

The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards (ASC 740) “Accounting for Income Taxes”, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.

The Company had a net loss of $26,139 during the year ended December 31, 2012 and had no Federal or State income tax obligations. The Company had no significant deferred tax effects resulting from the temporary differences that give rise to deferred tax assets and deferred tax liabilities for the year ended December 31, 2012 other than net operating losses.

Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period, plus or minus the change during the period in deferred tax assets and liabilities. There was no cumulative effect of adoption or current effect in continuing operations mainly because the Company has accumulated a net operating loss carry forward of approximately $4,126,000. The Company has made no provision for a deferred tax asset nor for increase in such since a valuation allowance has been provided which is equal to the deferred tax asset. It cannot be determined at this time that a deferred tax asset is more likely that not to be realized.

The Company’s loss carry forward of approximately $4,126,000 may be offset against future taxable income. The carry forward losses expire at the end of the years 2013 through 2032.

The utilization of the above loss carry forwards, for federal income tax purposes, may be subject to limitation resulting from changes in ownership.

The table below summarizes the differences between the Company’s effective tax rate and the statutory federal rate of 34% as follows for the periods ended December 31, 2012 and 2011:

	Year Ended December 31,
	2012			2011
Computed “expected” benefit	$	(8,840	)	$	(7,574	)
Increase in valuation allowance		8,840			7,574
	$	—		$	—

Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. The Components of the net deferred tax assets for the years ended December 31, 2012 and 2011 were as follows:

	2012			2011
Net operating loss carry forward	$	(1,402,840	)	$	(1,394,000	)
Less: Valuation allowance		1,402,840			1,394,000
	$	—		$	—