NOTE 6 - INCOME TAXES
The income tax provision (benefit) consists of:
December 31, 2016 | December 31, 2015 | |||||||||
| Current | $ | — | $ | — | ||||||
| Deferred | — | — | ||||||||
| Total | $ | — | $ | — |
The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate of 35% to pretax income for the years ended December 31, 2016 and 2015 due to the following:
| December 31, 2016 | December 31, 2015 | |||||||
| Expected tax (benefit) at 35% | $ | (17,647 | ) | $ | (1,929 | ) | ||
| Non-deductible stock-based compensation | 2,363 | — | ||||||
| Change in valuation allowance | 15,284 | 1,929 | ||||||
| Provision for income taxes | $ | — | $ | — | ||||
Net deferred tax assets consist of the following components as of December 31, 2016 and 2015:
| December 31, 2016 | December 31, 2015 | |||||||
| Deferred tax assets: | ||||||||
| Net operation loss carryforwards | $ | 21,155 | $ | 5,871 | ||||
| Valuation allowance | (21,155 | ) | (5,871 | ) | ||||
| Net deferred tax asset | $ | — | $ | — | ||||
Based on management’s present assessment, the Company has not yet determined it to be more likely than not that a deferred tax asset of $21,155 attributable to the future utilization of $60,444 of net operating loss carryforwards will be realized. Accordingly, the Company has maintained a 100% allowance against the deferred tax asset in the financial statements at December 31, 2016. The Company will continue to review this valuation allowance and make adjustments as appropriate. The net operating loss carryforwards expire $11,265 in year 2034, $5,510 in year 2035, and $43,669 in year 2036.
Current Unites States income tax law limits the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited.
The Company has had no tax positions since inception.