NOTE 7 - INCOME TAXES
As of June 30, 2017, the Company has a net operating loss carryforward of approximately $724,600 available to offset future taxable income through June 30, 2037. A valuation allowance is necessary due to the Company’s continued operating losses and the uncertainty of the Company’s ability to utilize all of the net operating loss carryforwards before they will expire.
The components of the Company’s deferred tax asset (liability) are as follows:
| June 30, 2017 | June 30, 2016 | ||||||||
| Deferred tax asset (liability): | |||||||||
| Net operating loss carryforward | $ | 246,371 | $ | 197,732 | |||||
| Valuation allowance | (246,371 | ) | (197,732 | ) | |||||
| Net deferred tax asset (liability) | $ | - | $ | - | |||||
The Company’s income tax expense differed from the statutory rates (federal 34%) as follows:
| Statutory rate applied to loss before income taxes | $ | (48,639 | ) | $ | (28,679 | ) | |||
| Increase in income taxes resulting from: | |||||||||
| Change in deferred tax asset valuation allowance | 48,639 | 18,607 | |||||||
| Non-deductible expenses | - | 10,072 | |||||||
| Income tax expense | $ | - | $ | - |
Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the Company will be able to sustain a position taken on an income tax return. The Company has no liability for uncertain tax positions as of June 30, 2017 and 2016. Interest and penalties, if any, related to unrecognized tax benefits would be recognized as income tax expense. The Company does not have any accrued interest or penalties associated with unrecognized tax benefits, nor was any significant interest expense recognized during the years ended June 30, 2017 and 2016.