NOTE 12. INCOME TAXES
Provision for income taxes is comprised of the following:
| September 30, 2017 |
September 30, 2016 |
|||||||
| Current tax expense: | ||||||||
| Federal | $ | 0 | $ | 0 | ||||
| State | 0 | 0 | ||||||
| Total | $ | 0 | $ | 0 | ||||
A reconciliation of provision for income taxes at the statutory rate to provision for income taxes at the Company’s effective tax rate is as follows:
| Statutory U.S. federal rate | 34 | % | 34 | % | ||||
| Statutory state income tax | 5.83 | % | 5.83 | % | ||||
| Less valuation allowance | (39.83 | %) | (39.83 | %) | ||||
| Effective rate | 0 | % | 0 | % | ||||
| Deferred income taxes are comprised of the following: | ||||||||
| Deferred Tax Asset | $ | - | $ | 148,538 | ||||
| Tax loss carryforwards |
319,972 |
344,821 | ||||||
| Less valuation allowance |
(319,972 |
) | (493,359 | ) | ||||
| Deferred tax benefit | $ | 0 | $ | 0 |
As of September 30, 2017 and 2016, the Company net operating loss carryforward of approximately $696,000 and $$732,600, respectively.
The increase (decrease) in the valuation allowance for the years ended September 30, 2017 and 2016 was an increase (decrease) of ($173,000) and $84,320 respectively.