x
|
Preliminary
Information Statement
|
||
o
|
Confidential,
for Use of the Commission Only (as permitted by Rule
14c-5(d)2))
|
||
o
|
Definitive
Information Statement
|
x
|
No
fee required.
|
|
o
|
Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11.
|
|
(1)
|
Title
of each class of securities to which transaction
applies:
|
|
(2)
|
Aggregate
number of securities to which transaction
applies:
|
|
(3)
|
Per
unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is
calculated and state how it was determined):
|
|
(4)
|
Proposed
maximum aggregate value of transaction:
|
|
(5)
|
Total
fee paid:
|
|
o
|
Fee
paid previously with preliminary materials:
|
|
o
|
Check
box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the form or schedule and the date of its
filing.
|
|
(1)
|
Amount
previously paid: _________________________________
|
|
(2)
|
Form,
Schedule or Registration Statement No.:________________
|
|
(3)
|
Filing
Party: _________________
|
|
(4)
|
Date
Filed: _______________
|
(1)
|
To
effect a 1-for-20 reverse stock split of our outstanding common stock, in
connection with our acquisition of Power Sports Factory, Inc. completed on
September 5, 2007;
|
(2)
|
To
change the name of our company from Purchase Point Media Corp. to Power
Sports Factory, Inc.; and
|
(3)
|
To
transact such other business as may properly come before the Special
Meeting and any adjournment or postponement
thereof.
|
1.
|
any
director or officer of our company since January 1, 2007, being the
commencement of our last completed audited financial year;
or
|
||
2.
|
any
associate or affiliate of any of the foregoing persons.
|
Name
of Stockholder
|
Number
of Shares of Common Stock Owned Beneficially at April 1,
2008
|
%
Outstanding Stock at April 1, 2008
|
Number
of Shares of Series B Preferred Stock Owned Beneficially at April 1,
2008
|
Number
of Shares of Common Stock Owned Beneficially as Adjusted Following
Effectiveness of Reverse Split and Conversion of Preferred
Stock
|
%
Outstanding Stock as Adjusted Following Effectiveness of Reverse
Split
|
Steve
Rubakh (1)
|
60,000,000
|
60.91%
|
287,400
|
5,874,000
|
20.75%
|
Folsom
Family Holdings (2)
|
3,337,500
|
3.39%
|
200,000
|
2,166,875
|
7.65%
|
Amtel
Communications, Inc. (3)
|
3,337,500
|
3.39%
|
166,875
|
0.59%
|
|
Raymond
A. Hatch (4)
|
250,000
|
*
|
12,500
|
*
|
|
Steven
A. Kempenich (5)
|
139,833
|
1,398,333
|
4.94%
|
||
All
Officers and Directors as a Group
|
63,587,500
|
64.55%
|
9,451,708
|
33.39%
|
(1)
|
Mr.
Rubakh’s address is c/o Power Sports Factory, Inc., 6950 Central Highway,
Pennsauken, NJ 08109. Does not include 287,400 shares of
Series B Preferred Stock also issued to Mr. Rubakh on September 5, 2007,
in connection with the acquisition of Power Sports Factory, which shares
will be converted into 2,874,000 shares of common stock upon the
effectiveness of the planned 1-for-20 reverse split of our common
stock.
|
(2)
|
Consists
of shares held by Folsom Family Holdings, a trust formed under the laws of
Canada. Mr. Folsom has a 10% interest in such entity, but no
voting or dispositive power over the shares held in the Folsom Family
Holdings trust. The trustee of the trust is Mr. Thomas
Skipon. The address of the trust is 2495 Haywood Ave., West
Vancouver, B.C. V7V 1Y2. Mr. Folsom's address is 1100 Melville
Street, Suite 320, Vancouver, B.C. V6E 4A6 Canada. Does not include
3,337,500 shares owned by Amtel Communications, Inc. Mr. Folsom is the
president and a director of Amtel. Folsom Family Holdings was issued
200,000 shares of Series B Preferred Stock in exchange for the
cancellation of obligations owing to Mr. Folsom by the
Company.
|
(3)
|
The
address of Amtel is c/o Martin and Associates, #2100-1066 West Hastings
Street, Vancouver, British Columbia, Canada V6E 3X2. To the
knowledge of the Company, Amtel has approximately 65 stockholders and 10%
to 15% of Amtel is owned by Rurik Trust, a Grand Cayman Islands Trust
formed in 1986. The Company is not aware of any other shareholder
owning over 5% of Amtel. Mr. Albert Folsom is President and a
director of Amtel, and by reason of his being president of Amtel, would
have voting power over the shares of the Company’s common stock held by
Amtel. Mr. Folsom does not own any shares of Amtel,has no
ownership interest, direct or indirect, in Amtel, and has no
dispositive power over the shares of Company common stock held by
Amtel.
|
(4)
|
The
address of Raymond A. Hatch is c/o Corporate House, 320 1100 Melville,
Vancouver, B.C. VC64A6 Canada.
|
(5)
|
Does
not include 139,833 shares of Series B Preferred Stock issued to Mr.
Steven A. Kempenich, our Chief Executive Officer and a Director, on
September 5, 2007, in connection with the acquisition of Power Sports
Factory, which shares will be converted into 1,398,333 shares of common
stock upon the effectiveness of the planned 1-for-20 reverse split of our
common stock. Mr. Kempenich’s address is c/o Power Sports Factory, Inc.,
6950 Central Highway, Pennsauken,
NJ 08109.
|
·
|
that
the common stock of the Registrant be reversed with the issuance of one
(1) new share of common stock for each twenty (20) old shares of common
stock. The record date for the reverse split was initially set as May 2,
2007 (“Reverse Split”); and
|
·
|
the
Company declare a stock dividend of its newly formed subsidiary, The Last
Word, Inc. of one (1) share for each share owned as of the record date.
The dividend was declared with a record date of May 2, 2007, and an
effective as soon as possible
thereafter.
|
Title
of Security
|
Authorized
At February 1, 2008
|
Outstanding
as of February 1, 2008
|
To
Be Authorized Following
Effectiveness
of Reverse Split
|
To
Be Outstanding Following
Effectiveness
of Reverse Split
|
Common
Stock
|
100,000,000
shs.
|
98,503,940
shs.
|
100,000,000*
shs.
|
28,307,357
|
Series
B Convertible Preferred Stock
|
3,000,000
shs.
|
2,338,216
shs.
|
3,000,000**
|
-0-
|
*
|
The
number of shares owned by each holder of common stock will be reduced
twenty-fold;
|
*
|
The
number of shares of our common stock which will be issued and outstanding
after the Reverse Split will be reduced from 98,503,940 shares to
approximately 4,925,197 shares;
|
*
|
After
the Reverse Split, the outstanding Preferred Stock will be converted into
23,382,160 shares of common stock, which will result in a total of
approximately 28,307,357 shares of common stock as being issued
and outstanding following the effectiveness of the Reverse
Split.
|
|
*
|
The
per share loss and net book value of our common stock will be increased
because there will be a lesser number of shares of our common stock
outstanding;
|
*
|
The
common stock will remain no par value per
share;
|
*
|
All
outstanding options, warrants, and convertible securities entitling the
holders thereof to purchase shares of common stock will enable such
holders to purchase, upon exercise thereof, 20 times fewer of the number
of shares of common stock which such holders would have been able to
purchase upon exercise thereof immediately preceding the reverse stock
split, at the same aggregate price required to be paid therefor upon
exercise thereof immediately preceding the reverse stock
split.
|
|
•
|
currency
fluctuations;
|
|
•
|
changes in tariffs
and taxes;
|
|
•
|
political and
economic instability; and
|
|
•
|
disruptions or
delays in shipments.
|
2008
|
High
|
Low
|
||||||
First
Quarter Ended March 31, 2008
|
$
|
0.03
|
$
|
0.02
|
||||
2007
|
||||||||
First
Quarter Ended March 31, 2007
|
0.02
|
0.01
|
||||||
Second
Quarter Ended June 30, 2007
|
0.07
|
0.01
|
||||||
Third
Quarter Ended September 30, 2007
|
0.06
|
0.02
|
||||||
Fourth
Quarter Ended December 31, 2006
|
0.08
|
0.02
|
||||||
2006
|
||||||||
First
Quarter Ended March 31, 2006
|
0.08
|
0.02
|
||||||
Second
Quarter Ended June 30, 2006
|
0.08
|
0.02
|
||||||
Third
Quarter Ended September 30, 2006
|
0.08
|
0.08
|
||||||
Fourth
Quarter Ended December 31, 2006
|
0.03
|
0.02
|
Name
|
Age
|
Position
|
Steve
Rubakh
|
46
|
President,
Acting Chief
|
|
Financial
Officer and Director
|
|
Steven
A. Kempenich
|
36
|
Chief
Executive Officer,
|
|
Acting
Secretary and Director
|
|
Albert
P. Folsom
|
68
|
Director
|
Raymond
A. Hatch
|
72
|
Director
|
Michael
F. Reuling
|
63
|
Director
|
Name
and Principal Position
(a)
|
Year
(b)
|
Salary
($)(1)
(c)
|
Bonus
($)
(d)
|
Stock
Awards
($)
(e)
|
Option
Awards
($)
(f)
|
Non-Equity
Incentive
Plan
Compensation
($)
(g)
|
Change
in Pension Value and Nonquali-
fied
Deferred
Compensation
Earnings
($)
(h)
|
All
Other
Compensation
(i)
|
Total
($)
(j)
|
||||||
Steven
A. Kempenich, Chief Executive Officer
|
2007
|
$
|
115,385
|
$
|
115,385
|
||||||||||
Steve
Rubakh, President and Chief Financial Officer
|
2007
|
$
|
255,129
|
$
|
255,129
|
||||||||||
Steve
Rubakh, Chief Executive Officer
|
2006
|
$
|
86,168
|
$
|
86,168
|
Years
Ended December 31,
|
||||||||
2007
|
2006
|
|||||||
Statement
of operations data:
|
||||||||
Operating
revenues
|
$
|
2,254,450
|
$
|
4,877,155
|
||||
Gross
profit
|
330,576
|
706,630
|
||||||
Gain
(loss) from continuing operations
|
(2,253,049
|
)
|
(436,572
|
)
|
||||
Gain
(loss) from continuing operations per share
|
(0.02
|
)
|
--
|
|||||
Balance
sheet data:
|
||||||||
Total
assets
|
$
|
1,169,392
|
$
|
2,270,677
|
||||
Long-term
debt
|
34,604
|
12,639
|
Page
|
|
23
|
|
24
|
|
25
|
|
26
|
|
27
|
|
29
|
PURCHASE
POINT MEDIA
CORP.
|
CONSOLIDATED
BALANCE SHEETS
|
December
31,
|
||||||||
2007
|
2006
|
|||||||
Current
Assets:
|
||||||||
Cash
|
$
|
11,146
|
$
|
46,740
|
||||
Cash
– restricted
|
-
|
173,264
|
||||||
Accounts
receivable
|
3,959
|
-
|
||||||
Note
receivable - related party
|
-
|
366,400
|
||||||
Inventory
|
937,703
|
1,612,904
|
||||||
Prepaid
expenses
|
135,319
|
-
|
||||||
Total
Current Assets
|
1,088,127
|
2,199,308
|
||||||
Property
and equipment-net
|
71,389
|
57,493
|
||||||
Other
assets
|
9,876
|
13,876
|
||||||
TOTAL
ASSETS
|
$
|
1,169,392
|
$
|
2,270,677
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIENCY)
|
||||||||
Current
Liabilities:
|
||||||||
Accounts
payable
|
$
|
1,096,769
|
$
|
120,206
|
||||
Accounts
payable - related party
|
80,172
|
-
|
||||||
Note
payable
|
-
|
1,570,376
|
||||||
Current
portion of long-term debt
|
164,772
|
2,540
|
||||||
Note
payable to related party
|
11,466
|
54,266
|
||||||
Accrued
expenses
|
192,804
|
122,873
|
||||||
Current
portion of convertible debt
|
262,159
|
-
|
||||||
Income
taxes payable
|
-
|
128,032
|
||||||
Total
Current Liabilities
|
1,808,142
|
1,998,293
|
||||||
Long
term liabilites:
|
||||||||
Long-term
debt - less current portion
|
10,461
|
12,639
|
||||||
Long-term
convertible debt
|
24,143
|
-
|
||||||
Total
Long-term Liabilities
|
34,604
|
12,639
|
||||||
TOTAL
LIABILITIES
|
1,842,746
|
2,010,932
|
||||||
Stockholders'
Equity (Deficiency):
|
||||||||
Preferred
Stock; no par value - authorized 50,000,000 shares
|
||||||||
Series
B Convertible - outstanding 2,303,216 and
-0- shares
|
964,950
|
-
|
||||||
Common
stock, no par value - authorized 100,000,000
|
||||||||
shares
- outstanding 98,503,940 shares
|
200,000
|
200,000
|
||||||
Additional
paid-in capital
|
356,500
|
1,500
|
||||||
Retained
earnings (deficit)
|
(2,194,804
|
)
|
58,245
|
|||||
Total
Stockholders' Equity (Deficiency)
|
(673,354
|
)
|
259,745
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
|
$
|
1,169,392
|
$
|
2,270,677
|
PURCHASE
POINT MEDIA
CORP.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
Years
Ended December 31,
|
||||||||
2007
|
2006
|
|||||||
Net
sales
|
$
|
2,254,350
|
$
|
4,877,155
|
||||
Costs
and Expenses:
|
||||||||
Cost
of sales
|
1,923,774
|
4,170,525
|
||||||
Selling,
general and administrative
|
||||||||
expenses
|
2,332,912
|
1,333,788
|
||||||
Non-cash
compensation
|
231,950
|
-
|
||||||
4,488,636
|
5,504,313
|
|||||||
Loss
from operations
|
(2,234,286
|
)
|
(627,158
|
)
|
||||
Other
income and expenses:
|
||||||||
Disposal
of fixed asset
|
(38,347
|
)
|
-
|
|||||
Forgiveness
of debt
|
3,580
|
-
|
||||||
Accretion
of beneficial conversion feature
|
(66,302
|
)
|
-
|
|||||
Interest
expense
|
(68,856
|
)
|
(106,396
|
)
|
||||
Interest
income
|
4,442
|
-
|
||||||
Commission
income
|
18,688
|
-
|
||||||
(146,795
|
)
|
(106,396
|
)
|
|||||
Loss
before provision
|
||||||||
for
benefit from income taxes
|
(2,381,081
|
)
|
(733,554
|
)
|
||||
Benefit
from income taxes
|
(128,032
|
)
|
(296,982
|
)
|
||||
Net
loss
|
$
|
(2,253,049
|
)
|
$
|
(436,572
|
)
|
||
Loss
per common share - basic and diluted
|
$
|
(0.02
|
)
|
$
|
-
|
|||
Weighted
average common shares
|
||||||||
outstanding
- basic and diluted
|
$ |
98,503,940
|
$ |
98,503,940
|
PURCHASE
POINT MEDIA
CORP.
|
CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' EQUITY
(DEFICIENCY)
|
Additional
|
Retained
|
||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid
- In
|
Earnings
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
(Deficit)
|
Total
|
|||||||||||||||||||
Balance,
January 1, 2006
|
2,085,716
|
$
|
-
|
98,503,940
|
$
|
200,000
|
$
|
1,500
|
$
|
494,817
|
$
|
696,317
|
|||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(436,572
|
)
|
(436,572
|
)
|
||||||||||||||||
Balance,
December 31, 2006
|
2,085,716
|
-
|
98,503,940
|
200,000
|
1,500
|
58,245
|
259,745
|
||||||||||||||||||
Issuance
of preferred stock for services
|
|||||||||||||||||||||||||
(valued
at $3.00 - $14.00 per share)
|
70,900
|
231,950
|
-
|
-
|
-
|
-
|
231,950
|
||||||||||||||||||
Issuance
of preferred stock for debt
|
|||||||||||||||||||||||||
(valued
at $5.00 per share)
|
92,600
|
463,000
|
-
|
-
|
-
|
-
|
463,000
|
||||||||||||||||||
Contribution
by shareholders
|
-
|
-
|
-
|
-
|
175,000
|
-
|
175,000
|
||||||||||||||||||
Beneficial
conversion feature
|
-
|
-
|
-
|
-
|
180,000
|
-
|
180,000
|
||||||||||||||||||
Sale
of preferred stock
|
54,000
|
270,000
|
-
|
-
|
-
|
-
|
270,000
|
||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(2,253,049
|
)
|
(2,253,049
|
)
|
||||||||||||||||
Balance,
December 31, 2007
|
2,303,216
|
$
|
964,950
|
98,503,940
|
$
|
200,000
|
$
|
356,500
|
$
|
(2,194,804
|
)
|
$
|
(673,354
|
)
|
PURCHASE
POINT MEDIA
CORP.
|
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
Years
Ended
|
||||||||
December
31,
|
||||||||
2007
|
2006
|
|||||||
CASH
FLOW FROM
|
||||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
(loss)
|
$
|
(2,253,049
|
)
|
$
|
(436,572
|
)
|
||
Adjustments
to reconcile net (loss) income
|
||||||||
to
net cash used in operating activities:
|
||||||||
Depreciation
and amortization
|
6,705
|
7,984
|
||||||
Non
cash compensation
|
231,950
|
-
|
||||||
Accretion
of beneficial conversion feature
|
66,302
|
-
|
||||||
Loss
on abandonment
|
38,347
|
-
|
||||||
Changes
in operating assets
|
||||||||
and
liabilities
|
$
|
2,363,957
|
$
|
(746,633
|
)
|
|||
Net
cash provided by (used in)
|
||||||||
operating
activities
|
454,212
|
(1,175,221
|
)
|
|||||
CASH
FLOW FROM
|
||||||||
INVESTING
ACTIVITIES:
|
||||||||
Security
deposit
|
4,000
|
65,000
|
||||||
Purchase of
equipment
|
(58,948
|
)
|
(36,459
|
)
|
||||
Change
in restricted cash
|
173,264
|
(173,264
|
)
|
|||||
Net
cash provided by (used in)
|
||||||||
investing
activities
|
118,316
|
(144,723
|
)
|
|||||
CASH
FLOW FROM
|
||||||||
FINANCING
ACTIVITIES:
|
||||||||
Proceeds
from related party
|
369,800
|
220,000
|
||||||
Payment
to related party
|
(412,600
|
)
|
(464,075
|
)
|
||||
Proceeds
from loan payable
|
185,512
|
2,766,734
|
||||||
Payment
on loan
|
(1,595,834
|
)
|
(1,196,679
|
)
|
||||
Contribution
by shareholder
|
175,000
|
-
|
||||||
Proceeds
from sale of preferred stock
|
270,000
|
-
|
||||||
Proceeds
from convertible debt
|
400,000
|
-
|
||||||
Net
cash provided by (used in)
|
||||||||
financing
activities
|
$ |
(608,122
|
)
|
$ |
1,325,980
|
PURCHASE
POINT MEDIA CORP.
|
CONSOLIDATED
STATEMENT OF CASH FLOWS (Continued)
|
Years
Ended
|
||||||||
December
31,2007
|
||||||||
2007
|
2006
|
|||||||
Net
(decrease) increase in cash
|
(35,594
|
)
|
6,036
|
|||||
Cash
- beginning of year
|
46,740
|
40,704
|
||||||
Cash
- end of year
|
$
|
11,146
|
$
|
46,740
|
||||
Changes
in operating assets
|
||||||||
and
liabilities consists of:
|
||||||||
Decrease
in accounts receivable
|
$
|
162,441
|
$
|
199,680
|
||||
Decrease
(increase) in inventory
|
675,201
|
(437,036
|
)
|
|||||
(Increase)
in prepaid expenses
|
(135,319
|
)
|
7,385
|
|||||
Decrease
(increase) in other assets
|
-
|
(9,876
|
)
|
|||||
Increase
(decrease) in accounts payable
|
1,669,735
|
(272,236
|
)
|
|||||
Increase
(decrease) in accrued expenses
|
119,931
|
(234,550
|
)
|
|||||
Decrease
in income taxes payable
|
(128,032
|
)
|
-
|
|||||
$
|
2,363,957
|
$
|
(746,633
|
)
|
||||
Supplementary
information:
|
||||||||
Cash
paid during the year for:
|
||||||||
Income
taxes
|
$
|
-
|
$
|
-
|
||||
Interest
|
$
|
-
|
$
|
18,381
|
||||
Non-cash
financing activities:
|
||||||||
Issuance
of preferred stock for services
|
$
|
231,950
|
$
|
-
|
||||
Beneficial
Conversion Feature
|
$
|
180,000
|
$
|
-
|
||||
Issuance
of preferred stock for debt
|
$
|
463,000
|
$
|
-
|
December
31,
|
||||||||
2007
|
2006
|
|||||||
Motor
bikes
|
$
|
576,780
|
$
|
1,534,314
|
||||
Parts
|
44,340
|
78,590
|
||||||
Deposits
on Inventory
|
316,583
|
-
|
||||||
$
|
937,703
|
$
|
1,612,904
|
December
31,
|
||||||||
2007
|
2006
|
|||||||
Equipment
|
$
|
40,586
|
$
|
19,204
|
||||
Signs
|
7,040
|
7,040
|
||||||
Software
|
37,566
|
15,500
|
||||||
Leasehold
improvements
|
-
|
27,609
|
||||||
85,192
|
69,353
|
|||||||
Less:
accumulated depreciation
|
13,803
|
11,860
|
||||||
$
|
71,389
|
$
|
57,493
|
December
31,
|
||||||||
2007
|
2006
|
|||||||
Note
payable to Five Point
|
||||||||
Capital
Inc. due May 2011;
|
||||||||
interest
at 18.45%; monthly
|
||||||||
payments
of $397
|
$
|
13,036
|
$
|
15,179
|
||||
Note
payable due April 30, 2008;
|
||||||||
interest
at 10% payable at
|
||||||||
maturity
(1)
|
80,000
|
-
|
||||||
Note
payable to Premium Payment
|
||||||||
Plan
due May 31, 2008; interest
|
||||||||
at
7.5%; monthly payments
|
||||||||
of
$871
|
4,218
|
-
|
||||||
Note
payable to AICCO, Inc. due
|
||||||||
July
13, 2008; interest at 8%;
|
||||||||
monthly
payments of $7,111 (2)
|
48,479
|
-
|
||||||
Note
payable to Micro Capital
|
||||||||
Management
Corp. due June 14, 2008;
|
||||||||
interest
at 8%
|
14,500
|
-
|
||||||
Demand
note payable to Shawn Landgraf;
|
||||||||
interest
free
|
15,000
|
-
|
||||||
175,233
|
15,179
|
|||||||
Less
amounts due within one year
|
164,772
|
2,540
|
||||||
$
|
10,461
|
$
|
12,639
|
2008
|
$ | 165,248 | ||
2009
|
3,188 | |||
2010
|
3,828 | |||
2011
|
2,969 | |||
175,233 | ||||
Current
portion
|
164,772 | |||
$ | 10,461 |
December
31,
|
||||||||
2007
|
2006
|
|||||||
Professional
fees
|
$
|
48,500
|
$
|
50,000
|
||||
Payroll
expense
|
76,978
|
-
|
||||||
Payroll
tax expense
|
45,825
|
28,260
|
||||||
Advertising
|
-
|
11,505
|
||||||
Rent
|
-
|
8,800
|
||||||
Commission
expense
|
6,493
|
7,800
|
||||||
Interest
expense
|
15,008
|
16,508
|
||||||
$
|
192,804
|
$
|
122,873
|
For
the Year Ended
|
||||||||||||||||
December
31, 2007
|
December
31, 2006
|
|||||||||||||||
Temporary
|
Temporary
|
|||||||||||||||
Difference
|
Tax
Effect
|
Difference
|
Tax
Effect
|
|||||||||||||
Gross
deferred tax
|
||||||||||||||||
asset
resulting from
|
||||||||||||||||
net
operating loss
|
||||||||||||||||
carryforward
|
$
|
2,200,000
|
$
|
748,000
|
$
|
-
|
$
|
-
|
||||||||
Valuation
allowance
|
(2,200,000
|
)
|
(748,000
|
)
|
-
|
-
|
||||||||||
Net
deffered tax asset
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
For
the Year Ended
|
||||||||
December
31,
|
||||||||
2007
|
2006
|
|||||||
Tax
benefit computed
|
||||||||
at
the statutory rate
|
$
|
(809,568
|
)
|
$
|
(249,408
|
)
|
||
Tax
effect of state
|
||||||||
operating
losses
|
-
|
(47,574
|
)
|
|||||
Effect
of unused
|
||||||||
operating
losses
|
681,536
|
-
|
||||||
$
|
(128,032
|
)
|
$
|
(296,982
|
)
|
|
|
(Signature
of Authorized Person)
|