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12. Income Taxes
 12 Months Ended
Jun. 30, 2012
Income Tax Disclosure [Abstract]  
12. Income Taxes

For the period from inception (August 21, 2009) through June 30, 2012, the Company incurred a net operating loss and, accordingly, no provision for income taxes has been recorded.  In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets.

 

Reconciliation of income tax expense to the provision for income taxes is as follows:

 

    June 30, 2012     June 30, 2011    
           
Federal income tax expense at statutory rate   $ 306,693     $ 139,057    
State income taxes, net of federal benefit     9,020       4,090    
Permanent differences     (32,354 )     (7,828 )  
Change in valuation allowance     (283,359 )     (135,319 )  
                   
Income tax provision   $ -     $ -    

 

Significant components of the Company’s deferred tax assets and liabilities were as follows:

 

    June 30, 2012     June 30, 2011  
             
Deferred tax assets:            
   Accrued liabilities   $ 231,845     $ 143,236  
   Net operating loss carryforwards     310,620       107,595  
                 
      Total deferred tax assets     542,465       250,831  
                 
Deferred tax liabilities:                
   Prepaid expenses     -       (403 )
   Property and equipment     (4,425 )     (2,701 )
                 
      Total deferred tax liabilities     (4,425 )     (3,104 )
                 
Net deferred tax assets before valuation allowance     538,040       247,727  
Less: Valuation allowance     (538,040 )     (247,727 )
Net deferred tax assets   $ -     $ -  

 

As of June 30, 2012, we had net operating loss carryforwards of $887,485 available to offset future regular, alternative minimum and foreign taxable income, if any. This loss can be carried forward for up to 20 years. Changes in our ownership may lead to restrictions in respect of the availability and use of this tax loss.

 

Tax returns for the years ended June 30, 2010, 2011 and 2012 are open to examination by the major taxing jurisdictions to which the Company is subject. No penalties or interest have been assessed on any returns filed by the Company.

 

FASB ASC 740 creates a single model to address accounting for uncertainty in tax positions by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. FASB ASC 740 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. There are no unrecognized tax benefits to record or disclose in the notes to the financial statements.