Note 4 - Income Taxes
As of March 31, 2017, the Company has net operating loss carryforwards of approximately $215,000 which results in a deferred tax asset of $73,000, which is subject to certain change of control limitations to reduce future federal and state taxable income through 2035. As of March 31, 2017, the Company has a valuation allowance of approximately $73,000 related to this net operating loss carryforwards. The change in the valuation allowance for the years ended March 31, 2017 and 2016 was an increase of $4,000 and $1,000, respectively.
The Company currently has no federal or state tax examinations in progress nor has it had any federal or state examinations since its inception. The Company’s 2014, 2015 and 2016 tax years remain subject to federal and state tax examination.
The benefit from income taxes consists of the following:
| For The Year Ended March 31, 2017 |
For The Year Ended March 31, 2016 |
||||||||
| Current Expense: | |||||||||
| Federal and State | $ | - | $ | - | |||||
| Deferred Tax Benefit: | |||||||||
| Federal and State | 15,000 | 11,000 | |||||||
| Valuation allowance | (15,000 | ) | (11,000 | ) | |||||
| Total | $ | - | $ | - | |||||
The income tax benefit differs from the amount computed by applying the federal statutory income tax rate to the loss before income taxes due to the following:
| For The Year Ended March 31, 2017 |
For The Year Ended March 31, 2016 |
||||||||
| Statutory Federal Income Tax Rate | (34 | )% | (34 | )% | |||||
| Valuation allowance | 34 | % | 34 | % | |||||
| Effective Income Tax Rate | 0 | % | 0 | % | |||||