Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

 v2.3.0.11
INCOME TAXES
 6 Months Ended
Jun. 30, 2011
INCOME TAXES
9.
INCOME TAXES

The Company accounts for income taxes in accordance with the liability method of accounting.  Under this guidance, deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax basis of assets and liabilities, and net operating loss carryforwards, using the enacted tax rates. Deferred income tax expense or benefit is based on changes in the asset or liability from period to period. The Company did not record a provision or benefit for federal, state or foreign income taxes for the three or six months ended June 30, 2011 or 2010 because the Company has experienced losses on a tax basis since inception. Because of the limited operating history, continuing losses and uncertainty associated with the utilization of the NOLs in the future, management has provided a full allowance against the value of its gross deferred tax asset.