Adomani, Inc.

4.	Income Taxes

The cumulative estimated net operating loss carry-forward is

$14,594,776,

$7,991,399,

and

$5,055,663

December 31, 2017,

2016,

and

2015,

respectively, and will expire in the years

2037,

2036,

and

2035,

respectively. Due to the enactment of the Tax Reform Act of

2018,

the corporate tax rate for those tax years beginning with

2018

has been reduced to

21%.

Therefore, the cumulative tax effect at the expected rate of

21%

comprising our net deferred tax amount is as follows:

	December 31,
	2017			2016
Net operating loss		1,179,117			580,655
Deferred tax asset attributable to:
Net operating loss carryover		3,064,903			1,678,194
Valuation allowance		(3,064,903	)		(1,678,194	)
Net deferred tax asset		-			-

Cumulative NOL		14,594,776			7,991,399
Cumulative NOL @ 21%		3,064,903			1,678,194

Due to the change in ownership provisions of the Tax Reform Act of

1986,

net operating loss carryover for Federal income tax reporting purposes are subject to annual limitations. The net operating loss carry-forward includes the years

2012

through

2017.

Should a change in ownership occur, net operating loss carryover

may

be limited as to use in future years.