• Filing Date: 2013-11-12
  • Form Type: 10-Q
  • Description: Quarterly report
Provision for Income Taxes
9 Months Ended
Sep. 30, 2013
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
Note 8 – Provision for Income Taxes
Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities.  Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return.  Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.
As of September, 2013, there is no provision for income taxes, current or deferred.
    September 30, 2013  
Net operating losses   $ 953,000  
Valuation allowance     ( 953,000 )
    $  -  
At September 30, 2013, the Company had a net operating loss carry forward in the amount of approximately $2,801,000 available to offset future taxable income through 2033.  The Company established valuation allowances equal to the full amount of the deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods.
A reconciliation of the Company’s effective tax rate as a percentage of income before taxes and federal statutory rate for the year ended September 30, 2013 is summarized below.
Federal statutory rate     (34.0 )%
State income taxes, net of federal       0.0  
Valuation allowance      34.0  
      0.0 %