Provision for Income Taxes

3 Months Ended

Sep. 30, 2011

Provision for income taxes is comprised of the following:

	30-Sep-11		30-Sep-10

Pretax loss	($47,744)		($923,981)

Current tax expense:
Federal	$0		$0
State	0		0
Total	$0		$0

Less deferred tax benefit:
Tax loss carry-forward	(998,231)		(658,582)
Allowance for recoverability	998,231		658,582

Provision for income taxes	$0		$0

A reconciliation of provision for income taxes at the statutory rate to provision
for income taxes at the company's effective tax rate is as follows:

Statutory U.S. federal rate		34%	34%
Less allowance for tax loss carryforward		-34%	-34%
Effective rate		0%	0%

Deferred income taxes are comprised of the following:

Tax loss carry-forward		$998,231	$658,582
Allowance for recoverability		(998,231)	(658,582)
Deferred tax asset		$0	$0

Note: The deferred tax asset arising from the tax loss carry-forward expires in fiscal years 2026 to 2031
and may not be recoverable upon the purchase of the Company under current IRS statutes.

DRS Inc. 10-Q/A