For the three months ending March 31, 2007 and 2006, the following amounts were paid for advertising, promotion, consulting, and travel:

 

		March 31, 2007			March 31, 2006
Cash and accrued expense		$	24,035		$	157,439
Common shares			168,064			444,513
Options			-			-
Warrants			-
Total		$	192,099		$	601,952

 

NOTE 19              BENEFICIAL SHARE-BASED FEE EXPENSE

The Company records a beneficial share-based fee expense when the market value as calculated in accordance with SFAS 123r of share-based awards to vendors are over and above the stated fair value of the services provided.

NOTE 24               PROVISION FOR INCOME TAXES

Deferred income taxes will be determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes will be measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.

At March 31, 2007, deferred tax assets consist of the following:

		2007
Deferred tax assets		$	16,893,395
Less: valuation allowance			(16,893,395	)
Net deferred assets		$	-0-

 

At March 31, 2007, the Company had federal net operating loss carry forwards in the approximate amounts of $ 49,686,455 available to offset future taxable income through 2027. The Company established valuation allowances equal to the full amount of the deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods.