Annual report pursuant to section 13 and 15(d)

NOTE 7 - INCOME TAXES (Tables)

v2.4.0.8
NOTE 7 - INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] Significant components of the Company's deferred tax assets and liabilities are summarized as follows:

   
December 31,
   
December 31,
 
   
2013
   
2012
 
Deferred tax assets:
           
   Net operating loss carry forwards
 
2,928,000
   
$
2,920,000
 
   Long lived assets
   
270,000
     
326,000
 
   Share based payments
   
71,000
     
75,000
 
   Other
   
35,000
     
32,000
 
   Deferred tax asset
   
3,304,000
     
3,353,000
 
                 
Deferred tax liabilities:
               
   Long lived assets
   
(44,000
)
   
(73,000
)
   Deferred tax liabilities
   
(44,000
)
   
(73,000
)
Net deferred tax asset
   
3,260,000
     
3,280,000
 
   Less: Valuation allowance
   
(3,140,000
)
   
(3,280,000
)
   Net deferred tax asset
 
$
120,000
   
$
-0-
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] A reconciliation of the statutory income tax rate to the effective rate is as follows for the period December 31, 2013 and 2012:

   
December 31,
   
December 31,
 
   
2013
   
2012
 
Federal income tax rate
   
34
%
   
34
%
State income tax, net of federal benefit
   
6
%
   
6
%
Permanent differences
   
6
%    
40
%
Prior year adjustments
   
(35
 %)
   
-
%
Effective income tax rate
   
11
%
   
80
%
Effect on valuation allowance
   
(70
%)
   
(80
%)
Effective income tax rate
   
(59.0
%)
   
0.0
%
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] Income tax (benefit) provision:

   
Year Ended
 
   
December 31,
   
December 31,
 
   
2013
   
2012
 
Current:
           
               Federal
 
$
-
 
 
$
-
 
               State and local
   
-
     
-
 
               
 
               Total current tax provision
   
-
     
-
 
               
 
Deferred:
             
 
               Federal
   
-
     
-
 
               State and local
   
-
     
-
 
               Release of valuation allowance
   
(120,000
   
-
 
              
             
 
               Total deferred tax (benefit) provision
   
(120,000
   
-
 
               
 
Total (benefit) provision
 
$
(120,000
   
-