INCOME TAXES

12 Months Ended

Dec. 31, 2013

At December 31, 2013 and 2012, the Company had a federal net operating loss carry forward of approximately $14,088,345 and $14,075,389 respectively, which expires in varying amounts between 2031 and 2032.

Components of net deferred tax assets, including a valuation allowance, are as follows at December 31:

	2013			2012
Deferred tax assets:
Net operating loss carry forward	$	4,930,921		$	4,926,386
Total deferred tax assets		4,930,921			4,926,386
Less: Valuation Allowance		(4,930,921	)		(4,926,386	)

Net Deferred Tax Assets	$	--		$	--

The valuation allowance for deferred tax assets as of December 31, 2013 and 2012 was $4,930,921 and $4,926,386, respectively. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of December 31, 2013 and 2012, accordingly, recorded a full valuation allowance.

CALA CORP 10-K