did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because
we have experienced operating losses since inception. When it is more likely than not that a tax asset cannot be realized
through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the
net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely
than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period.
Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the years
ended June 30, 2012 and 2011, respectively, under FASB ASC 740. We did not recognize any adjustment to the liability
for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the
consolidated balance sheet.
loss carry forwards totaled $71,272 and $6,634 as of June 30, 2012 and 2011, respectively, and will begin to expire in 2030. Accordingly
deferred Federal and State tax assets of approximately $28,509 and $2,654, respectively, were offset by a valuation allowance.