A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows:
|
| December 31, | ||||
|
| 2016 |
| 2015 | ||
| U.S. federal statutory graduated rate |
|
| 34.00% |
| 34.00% |
| State income tax rate, net of federal benefit |
|
| 0.00% |
| 0.00% |
| Rent & services |
|
| -16.06% |
| -.3.40% |
| Costs capitalized under Section 195 |
|
| -17.94% |
| -30.60% |
|
|
|
|
| ||
| Effective rate |
|
| 0.00% |
| 0.00% |
|
|
|
|
| ||
The Company is considered a start-up company for income tax purposes. As of December 31, 2016, the Company had not commenced its trade operations, so all costs were capitalized under Section 195. Accordingly, the Company had no net operating loss carry forwards at December 31, 2016.