v2.4.0.6
Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
5. Income Taxes

 

The Company has reviewed its tax positions as of December 31, 2011 and 2010, and has not identified any positions that are uncertain. Income tax returns filed and to be filed for the years ended December 31, 2009, 2010, and 2011 are open to review by the Internal Revenue Service.

 

The tax effects of temporary differences that give rise to significant portions of the Company's net deferred tax asset at December 31, 2011 and 2010 are as follows:

 

    December 31,     December 31,  
    2011     2010  
Deferred tax asset:                
Capitalized formation costs   $ 38,000     $ 13,200  
Net operating loss carryforward     2,200       400  
Valuation allowance     (40,200 )     (13,600 )
Net deferred tax asset recognized   $ —     $ —  

 

A full valuation allowance has been recorded against the Company's deferred tax asset because, based on the weight of available evidence, it is more likely than not that such benefits will not be realized. As of December 31, 2011, the Company has a net operating loss carryforward for federal and state income tax purposes of approximately $6,300. The net operating loss carryforward will begin to expire in 2029.

 

The benefit from income taxes differs from the amount computed by applying the United States (US) federal income tax rate of thirty-four percent (34%) in 2011 and fifteen percent (15%) in 2010 to loss before income taxes for the years ended December 31, 2011 and 2010 as follows:

 

    Year Ended     Year Ended  
    December 31,     December 31,  
    2011     2010  
             
US federal income tax benefit at statutory rate   $ (9,200 )   $ (3,300 )
Change in expected effective tax rate from 15% to 34%     (17,400 )     —  
Change in valuation allowance     26,600       3,300  
Benefit from income taxes   $ —     $ —