The Company provides for income taxes under ASC 740, "Income Taxes".   ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse.

ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 34% to the net loss before provision for income taxes because of the application of a full valuation allowance.  

The Company's deferred tax asset is comprised of out net operating losses which were fully reserved as of December 31, 2015 and 2014.

Due to the change in ownership provisions of the Tax Reform Act of 1986, our net operating loss carry forwards for the year ended December 31, 2015 was $102,000 and for federal income tax reporting purposes is subject to annual limitations.  The net operating loss carry forwards expire beginning in 2033.