Annual report pursuant to section 13 and 15(d)

7. Income Taxes (Tables)

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7. Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2012
Income Taxes Tables  
Schedule of Deferred Tax Assets and Liabilities
    2012     2011  
Deferred tax assets:                
NOL Carryover   $ 2,531,500     $ 1,998,000  
Returns Reserve     20,700       32,800  
Inventory Reserve     22,300       –  
Accrued Related Party Interest     36,700       82,300  
Accrued Officer Compensation     158,600       41,800  
Accrued Compensated Absences     38,100       26,800  
Charitable Contributions     1,900       2,400  
Deferred tax liabilities:                
Depreciation and Amortization     (58,700 )     (92,000 )
                 
Valuation Allowance     (2,751,100 )     (2,092,100 )
Net deferred tax asset   $ –     $ –  
Schedule of Effective Income Tax Rate Reconciliation
    2012     2011  
             
Book Loss   $ (806,400 )   $ (533,100 )
Charitable     –       –  
Meals and Entertainment     2,800       3,000  
Stock Compensation for Services     162,800       189,100  
Related Party Interest     (45,700 )     48,400  
Accrued Compensated Absences     11,200       6,200  
Accrued Officer Compensation     116,800       41,800  
Returns Reserve     (12,100 )     3,100  
Inventory Reserve     5,800       –  
Depreciation and Amortization     33,300       15,200  
Valuation Allowance     531,500       226,300  
    $ –     $ –