NOTE 13. INCOME TAXES
Deferred tax assets consist of:
| |
|
As of
November 30, 2017
|
|
|
As of
November 30, 2016
|
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
Net operating tax carryforwards
|
|
$
|
8,915,112
|
|
|
$
|
5,313,340
|
|
|
Tax Rate
|
|
|
35
|
%
|
|
|
35
|
%
|
|
Gross deferred tax assets
|
|
|
3,120,289
|
|
|
|
1,859,669
|
|
|
Valuation allowance
|
|
|
(3,120,289
|
)
|
|
|
(1,859,669
|
)
|
|
Net deferred tax assets
|
|
$
|
-0-
|
|
|
$
|
-0-
|
|
As of November 30, 2017, the Company has a net operating loss carryforward of approximately $9 million. Net operating loss carryforwards expires twenty years from the date the loss was incurred.
Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carryforwards are expected to be available to reduce taxable income. As the achievement of required future taxable income is uncertain, the Company has recorded a valuation allowance.
Due to the enactment of the Tax Reform Act of 2018, the corporate tax rate for those tax years beginning with 2018 will be reduced to 21%.