Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

Income taxes (Tables)

12 Months Ended

Dec. 31, 2012

Reconciliation of Federal Statutory Income Tax Provision To Company's Actual Provision

A reconciliation of the federal statutory income tax provision to the Company's actual provision for the years ended December 31, 2012 and 2011 is as follows:



	2012			2011
Benefit at federal statutory tax rate	$	680,000		$	648,000
Unbenefited operating losses	(680,000		)	(648,000		)
Income tax provision	$	—		$	—

Schedule of Deferred Tax Assets

The components of net deferred tax assets recognized in the accompanying consolidated balance sheets at December 31, 2012 and 2011 are as follows:



	2012			2011
Net operating loss carryforwards	$	3,380,000		$	2,896,000
Accrued expenses and other	676,000			588,000
Accounts receivable	60,000			37,000
Inventory	130,000			139,000
Depreciation	94,000			184,000
	4,340,000			3,844,000
Valuation allowance	(4,340,000		)	(3,844,000		)
Net deferred tax asset	$	—		$	—