NOTE 5 - INCOME TAXES

There were no income tax provision (benefit) for the years ended April 30, 2017 and 2016.  The components of the Company's net deferred tax assets are as follows:

Deferred income taxes arise from timing differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. A deferred tax asset valuation allowance is recorded when it is more likely than not that deferred tax assets will not be realized. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the net deferred tax assets, a valuation allowance equal to 100% of the deferred tax assets has been recorded at April 30, 2017 and 2016.

A reconciliation between the statutory federal income tax rate and the Company's tax provision is as follows:

At April 30, 2017 and 2016, respectively, the Company had federal and state net operating loss carry forwards of approximately $4,310,000 and $3,810,000 which will expire in fiscal years ending April 30, 2031 through April 30, 2037.

The Company has no tax position at April 30, 2017 and 2016 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date.  The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the periods presented. The Company had no accruals for interest and penalties at April 30, 2017 and 2016.  The Company's federal income tax returns for fiscal years 2015 through 2017 remain open and subject to examination.