Annual report pursuant to Section 13 and 15(d)

16. Discontinued Operations (Tables)

16. Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2013

A reconciliation of the provision (benefit) for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows for the years ended December 31:

	2013			2012
Computed tax at the federal statutory rate of 34%	$	(1,650,000	)	$	(1,319,000	)
Return to provision adjustment		452,000			-
Other		6,000			8,000
Valuation allowance		1,192,000			1,311,000
Provision for income taxes	$	-		$	-

Assets and liabilities of discontinued operations

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 amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31:

	2013			2012
Deferred tax assets:
Accrued Compensation	$	1,615,000		$	1,360,000
Net operating loss carryforwards		5,659,000			5,350,000
Property and equipment		302,000			326,000

Valuation Allowance		(7,576,000	)		(7,036,000	)

Net deferred tax assets	$	-		$	-

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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