XML 43 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTE 15 - INCOME TAXES
 3 Months Ended
Jun. 30, 2012
Income Tax Disclosure [Text Block]
NOTE 15 - INCOME TAXES

The Company adopted ASC 740, Accounting for Uncertainty in Income Taxes. In assessing the recoverability of its deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. The management considers historical and projected future taxable income, and tax planning strategies in making this assessment.

The Company’s effective tax rate was 6% for the quarter ending June 30, 2012. Since the Company continued to sustain substantial losses during the current quarter ending June 30, 2012, no valuation allowance was released for the current period. Our assessment concludes that it is more likely that some portion or all of the deferred tax assets will not be realized based on current and historical operating results.

The Company recorded an income tax benefit of $31,710 resulting from operational results of its foreign entities for the three month period ending June 30, 2012.