NOTE 8 - INCOME TAXES

For the years ended March 31, 2017, and 2016, the Company has incurred net losses before and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $446,000 and $170,000 at March 31, 2017 and 2016, respectively, and will expire beginning in the year 2034. The primary difference between the Company’s statutory and effective tax rate relates to a full valuation allowance being recorded.

Deferred tax assets as of March 31, 2017, and 2016 consisted of tax effected net operating losses of $151,729 and $57,718, respectively. During the years ended March 31, 2017, and 2016, the valuation allowance increased by $94,011 and $24,681, respectively.

The Company has identified the United States Federal tax returns as its “major” tax jurisdiction. The United States Federal return years 2017 through 2014 are still subject to tax examination by the United States Internal Revenue Service; however, we do not currently have any ongoing tax examinations. The Company is subject to examination by the California Franchise Tax Board for the years ended 2017 through 2013 and currently does not have any ongoing tax examinations.