Deferred income tax provisions result from temporary differences in the recognition of income and expenses for financial reporting purposes and for tax purposes. At December 31, 2000 and 2001, the tax effects of these temporary differences resulted principally from the following:

     Realization of the net deferred tax asset is dependent on the Company's ability to generate taxable earnings in the future. Management believes that it is more likely than not that its deferred tax assets will be fully realized. The Company has net operating loss carryforwards totaling approximately $9.0 million which begin expiring in 2012.