Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v2.3.0.15
Income Taxes
 8 Months Ended
Sep. 30, 2011
Income Taxes
Note 9. Income Taxes

The Company has the following deferred tax assets and liabilities at September 30, 2011:

Non-current assets:
      
Net operating loss carryforwards
   $ 25,000  
Amortizable start-up costs
     169,000  
      194,000  
Valuation allowance
     (194,000 ) 
    $ —  

The Company established a valuation allowance of approximately $194,000 as of September 30, 2011, which fully offsets the deferred tax asset of approximately $194,000.  The deferred tax asset results from applying an effective combined federal and state tax rate of 40% to start-up costs of approximately $422,000 and net operating losses of approximately $63,000. The Company’s net operating losses will expire beginning in 2031.  Effective tax rates differ from statutory rates due to timing differences in the deductibility of expenses and the establishment of the valuation allowance.