Note 3 – Income Taxes
As at May 31, 2017, the Company is in arrears on filing its statutory income tax returns. The Company has incurred substantial net operating losses of approximately $4,000,000 since January 28, 2008 (Date of Inception).
It is management’s intention to hire a tax professional to file these tax returns on its behalf.
The Company’s deferred tax assets and liabilities consist primarily of the following:
| 2017 | 2016 | |||||
| Net operating losses – U.S. parent: | ||||||
| Amount carried forward from prior years | $ | (1,340,812) | $ | (1,247,541 | ) | |
| Net operating losses | (142,061 | ) | (93,271 | ) | ||
| (1,482,873 | ) | (1,340,812 | ) | |||
| Net operating losses – Canadian subsidiary: | ||||||
| Amount carried forward from prior years | (31,760) | (31,760 | ) | |||
| Net operating losses | - | - | ||||
| (31,760 | ) | (31,760 | ) | |||
| Total | (1,514,633 | ) | (1,372,572 | ) | ||
| Less: valuation allowance | 1,514,633 | 1,372,572 | ||||
| $ | - | $ | - |
During the years ended May 31, 2017 and 2016, the change in valuation allowance was $142,061 and $93,271, respectively.