Entity information:
Note 11 – Income Tax

Deferred Tax Assets

At September 30, 2017 and 2016, the Company had net operating loss (“NOL”) carry–forwards for Federal income tax purposes of $1,419,393 and $56,992, respectively, which may be offset against future taxable income through 2034.  No tax benefit was reported with respect to these NOL carry-forwards in the accompanying financial statements because the Company believes the realization of the Company’s net deferred tax assets of approximately $315,280 as of September 30, 2017, was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are fully offset by a full valuation allowance.

Components of deferred tax assets are as follows:

 
  
September 30,
2017
    
September 30,
2016
  
Net deferred tax assets – Non-current:
            
Expected income tax benefit from NOL carry-forwards
  
$
315,280
    
$
8,549
  
Less valuation allowance
    
(315,280
)
    
(8,549
)
Deferred tax assets, net of valuation allowance
  
$
-
    
$
-
  

Income Tax Provision in the Statements of Operations

A reconciliation of the consolidated federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes for the years ended September 30, 2017 and 2016 is as follows:

 
 
2017
 
 
2016
 
 
 
 
 
 
 
 
Federal statutory income tax expense (benefit) rate
 
 
(34.00
)%
 
 
(34.00
)%
Federal income tax rate difference
 
 
19.00
%
 
 
19.00
%
State statutory income tax (benefit) rate, net of effect of state income tax deductible to federal income tax
 
 
(7.51
)%
 
 
-
%
Change in valuation allowance on net operating loss carry-forwards
 
 
22.51
%
 
 
15.00
%
Effective income tax rate
 
 
0.00
%
 
 
0.00
%