NOTE 9 – INCOME TAX:

Components of the Company’s deferred income tax assets are as follows:  

Tax Rate Reconciliation are as follows:

The deferred tax assets were calculated assuming a 21% tax rate at December 31, 2017 and December 31, 2016.  

The federal tax rates changed from 35% to 21%, resulting in a decrease in deferred taxes and related valuation allowance as of 12/31/16 and 12/31/17 in the amount of 676,000 and 744,000, respectively

At December 31, 2017, the Company had a federal net operating loss carry forward available for income tax purposes of approximately $5,100,000 expiring over the years 2029 through 2035. Because management does not believe it is more likely than not that the carry forward will be utilized, the deferred tax assets have been fully reserved.

The Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns and have recognized that certain tax positions taken in the 2014 through 2017 years could result in adjustments to the fair value adjustments for tax purposes.  However, these adjustments would not result in a tax provision as they would result in revisions to the net operating loss carryforward amount.

Management has determined that the Company is subject to examination of income tax filings in the United States for the 2014 through 2017 tax years. In the event that the Company is assessed penalties and/or interest, penalties will be charged to other operating expense and interest will be charged to interest expense.