Entity information:

Note 8 - INCOME TAXES

 

The deferred tax asset consists of the following:

 

   May 31, 2017  May 31, 2016
Net operating loss carryforward  $1,516,000   $326,000 
Valuation allowance   (1,516,000)   (326,000)
Deferred tax asset, net  $—     $—   

 

 

For the years ended May 31, 2017 and 2016, the valuation allowance increased by approximately $1,200,000 and $160,000, respectively.

 

The deferred tax asset differs from the amount computed by applying the statutory federal and state income tax rates to the loss before income taxes. The sources and tax effects of the differences are as follows:

 

 

Effective Income Tax Rate Reconciliation
   2017  2016
Federal Rate   34%   34%
State Rate   6%   6%
Valuation Allowance   (40%)   (40%)
Effective income tax rate   0%   0%

 

As of May 31, 2017, the Company has net operating loss carryforwards of approximately $3,820,000 to reduce future federal and state taxable income through 2037.

 

The Company currently has no federal or state tax examinations in progress, nor has it had any federal or state examinations since its inception. All of the Company's tax years are subject to federal and state tax examinations.