NOTE 8 – INCOME TAXES
No provision was made for federal income taxes since the Company has net operating losses for which the related deferred tax asset has been offset by a full valuation allowance. At December 31, 2016, the Company had operating loss carryforwards of approximately $630,968 as shown in the table below:
|
Accumulated deficit
|
|
$
|
7,951,648
|
|
|
Shares and options issued for services
|
|
|
(1,332,680
|
)
|
|
Shares issued for purchased research in acquisition
|
|
|
(5,988,000
|
)
|
|
Operating loss available to offset income
|
|
$
|
630,968
|
|
The net operating loss carry-forwards may be used to reduce taxable income through the year 2035. The principal difference between the net operating loss for book purposes and income tax purposes results from non-cash charges to operations related to common shares issued for services and acquisitions that are not currently deductible for income tax purposes. The availability of the Company’s net operating loss carry-forwards are subject to significant limitation if there is more than 50% positive change in the ownership of the Company’s stock.
|
Income Tax at Statutory Rate
|
|
|
34
|
%
|
|
Effect of Valuation Allowance
|
|
|
(34
|
%)
|
|
|
|
|
-
|
|