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11. INCOME TAXES | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
11. INCOME TAXES | The Company accounts for income taxes in accordance with ASC Topic No. 740, “Income Taxes.” This standard requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carry forwards. At December 31, 2013, a deferred tax asset results from the net operating loss carryover of approximately $29,300,000, based on the U.S. Corporate income tax rate of 34%. A 100% valuation allowance has been provided for the deferred tax assets, as the ability of the Company to generate sufficient taxable income in the future is uncertain. The unexpired net operating loss carry forward at December 31, 2013 is approximately $29,300,000 with various expiration dates between 2018 and 2033 if not utilized. All tax years starting with 2010 are open for examination. Current deferred tax asset:
|  | 2013 |  |  | 2012 |
Asset Reserve Accounts |  | $ | - |  |  | $ | 984,068 |
Valuation allowance |  |  | - |  |  |  | (984,068 | )
Net benefit recorded |  |  | - |  |  |  | - |
Non-current deferred tax asset:
|  | 2013 |  |  | 2012 |
34% of net operating loss carry forwards |  | $ | 9,948,987 |  |  | $ | 9,214,157 |
Valuation allowance |  |  | (9,948,987 | ) |  |  | (9,214,157 | )
Net non-current deferred tax asset |  |  | - |  |  |  | - |
Reconciliations of the expected federal income tax benefit based on the statutory income tax rate of 34% to the actual benefit for the years ended December 31, 2012 and 2011 are listed below.
|  | 2013 |  |  | 2012 |
Expected federal income tax benefit |  | $ | 1,410,350 |  |  | $ | 627,410 |
Valuation allowance |  |  | (734,830 | ) |  |  | (1,928,362 | )
Debt Settlement Expense |  |  | - |  |  |  | 8,940 |
Impairment Loss |  |  | - |  |  |  | (9,195 | )
Derivative Gain |  |  | 124,269 |  |  |  | 1,581,360 |
Amortization of debt discounts and financing costs |  |  | (290,411 | ) |  |  | (99,632 | )
Other |  |  | 198,464 |  |  |  | (167,871 | )
Stock-based compensation |  |  | (707,842 | ) |  |  | - |
Expiration of Net Operating Loss Carryover |  |  | - |  |  |  | (12,650 | )
Income tax expense (benefit) |  | $ | - |  |  | $ | - |
The Company has no tax positions at December 31, 2013 and 2012 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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