XML 25 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
INCOME TAXES

NOTE 10. INCOME TAXES

 

At December 31, 2011 the Company had available net-operating loss carryforwards for Federal tax purposes of approximately $5,300,000, which may be applied against future taxable income, if any, from 2027 to 2031. Certain significant changes in ownership of the Company may restrict the future utilization of these tax loss carryforwards.

 

At December 31, 2011 the Company had a deferred tax asset of approximately $1,802,000 representing the benefit of its net operating loss carry-forwards. The Company has not recognized any tax benefit or tax assets from these loss carry-forwards due to the fact that realization of the tax benefit is uncertain and therefore, a valuation allowance equal to 100% of the tax benefit has been applied against the value of any tax asset arising from these losses. The difference between the federal statutory tax rate of 34% and the Company's effective tax rate of 0% is due to an increase in the valuation allowance of approximately $255,000 in 2011.