Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2012
Income Tax Disclosure [Abstract]  
Differences between effective tax rate and the statutory federal rate
    December 31, 2012     December 31, 2011
Tax benefit computed at "expected" statutory rate    $ (1,623,524)     $ (2,965,573)
State income taxes, net of benefit      (178,110)       (54,330)
Permanent differences :              
    Stock based compensation and consulting     14,115       157,125
    Loss (gain) from change in fair value of derivative liability     (54,652)       2,090,541
    Amortization of debt discount     40,511       212,047
    Impairment loss                         -          170,000
               
Increase in valuation allowance      1,801,660       390,190
Net income tax benefit    $ -     $ -
Deferred tax assets and liabilities
    December 31, 2012     December 31, 2011
Deferred tax assets:   $ 10,003,984     $ 8,202,324
    Net operating loss carryforward
    Other     -       -
Total deferred tax assets   $ 10,003,984     $ 8,202,324
               
Deferred tax liabilities:              
Book basis of property and equipment in excess of tax basis   $ -     $ -
Total deferred tax liabilities   $ -     $ -
               
Net deferred tax asset before valuation allowance   $ 10,003,984     $ 8,202,324
Less:  valuation allowance     (10,003,984)       (8,202,324)
Net deferred tax asset   $ -     $ -