Entity information:

The components of income tax (benefit) expense for the each of the years ended December 31, 2016 and 2015, respectively, are as follows:

 

    Year ended     Year ended  
    December 31,     December 31,  
    2016     2015  
Federal:            
Current   $ —     $ —  
Deferred     —       —  
      —       —  
State:                
Current     —       —  
Deferred     —       —  
      —       —  
                 
    Total   $ —     $ —  


As of December 31, 2016, the Company had aggregate net operating loss carryforward(s) to offset future taxable income of approximately $1,275,000.   The amount and availability of any net operating loss carryforward(s) will be subject to the limitations set forth in the Internal Revenue Code.  Such factors as the number of shares ultimately issued within a three year look-back period; whether there is a deemed more than 50 percent change in control; the applicable long-term tax exempt bond rate; continuity of historical business; and subsequent income of the Company all enter into the annual computation of allowable annual utilization of any net operating loss carryforward(s).

 

The Company's income tax (benefit) expense for the each of the years ended December 31, 2016 and 2015, respectively, are as follows:

 

    Year ended     Year ended  
    December 31,     December 31,  
    2016     2015  
             
Statutory rate applied to income before income taxes   $ (136,000 )   $ (189,400 )
Increase (decrease) in income taxes resulting from:                
State income taxes     —       —  
Non-deductible charge for the effect of the partial conversion                
of the note payable to common stock at less than “fair value”     73,600       —  
Other, including reserve for deferred tax asset                
and application of net operating loss carryforward(s)     62,400       189,400  
                 
Income tax expense   $ —     $ —  

 

Temporary differences, consisting primarily of the prospective usage of net operating loss carryforwards give rise to deferred tax assets and liabilities as of December 31, 2016 and 2015, respectively:

 

    December 31,     December 31,  
    2016     2015  
Deferred tax assets            
Net operating loss carryforwards   $ 447,400     $ 385,000  
Less valuation allowance     (447,400 )     (385,000 )
                 
Net Deferred Tax Asset   $ —     $ —  

 

During the each of the years ended December 31, 2016 and 2015, respectively, the valuation allowance against the deferred tax asset increased by approximately $62,400 and $251,000.