Quarterly report pursuant to Section 13 or 15(d)

NOTE 7 - INCOME TAXES

v2.4.0.8
NOTE 7 - INCOME TAXES
 6 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
NOTE 7 - INCOME TAXES

 

NOTE 7 - INCOME TAXES  

At June 30, 2013, the Company had federal and state net operating loss carry forwards of approximately $1,483,000 that expire in 2024.

 

Due to operating losses, there is no provision for current federal or state income taxes for the six months ended June 30, 2013 or 2012.

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal and state income tax purposes.

 

The Company’s deferred tax asset at June 30, 2013 consists of a net operating loss calculated using federal and state effective tax rates equating to approximately $579,000 less a valuation allowance in the amount of approximately $579,000. Because of the Company’s lack of earnings history, the deferred tax asset has been fully offset by a valuation allowance.

 

The Company’s total deferred tax asset as of June 30, 2013 is as follows: 

         
  Net operating loss   $ 579,000  
  Valuation allowance     (579,000)  
         
  Net deferred tax asset   $ —     

 

The reconciliation of income taxes computed at the federal and state statutory income tax rate to total income taxes for the period ended June 30, 2013 and 2012 is as follows:

 

    2013   2012
Income tax computed at the federal statutory rate     34 %     34 %
 Income tax computed at the state statutory rate     5 %     5 %
 Valuation allowance     (39 %)     (39 %)
 Total deferred tax asset     0 %     0 %

 

The valuation allowance increased by approximately $116,000 and $95,000 for the six months ending June 30, 2013 and 2012 respectively.