NOTE 10 - INCOME TAXES
As of September 30, 2017, the Company had net operating loss carry forwards of approximately $2,400,000 that may be available to reduce future years' taxable income through 2037. The Company is current on the filing of its Federal and State Income Tax Returns through the fiscal year ended September 30, 2015. The two Federal and State Income Tax Returns through the fiscal years ended September 30, 2016 and 2017 will be filed following the completion of the audit of the Company’s Financial Statements for the two years ended September 30, 2016 and 2017.
As of September 30, 2017 | As of September 30, 2016 | |||||||
| Deferred tax assets: | ||||||||
| Net operating tax carryforwards | $ | 937,046 | $ | 365,113 | ||||
| Other | — | — | ||||||
| Gross deferred tax assets | 937,046 | 365,113 | ||||||
| Valuation allowance | (937,046 | ) | (365,113 | ) | ||||
| Net deferred tax assets | $ | — | $ | — | ||||
Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carryforwards are expected to be available to reduce taxable income. Management periodically reviews the likelihood that that it will be able to recover its deferred tax assets. As the achievement of required future taxable income is uncertain based on an assessment of all available evidence, the Company recorded a valuation allowance equal to the full amount of its deferred tax assets as of September 30, 2017 and 2016.
Reconciliation between the provision for income taxes and the expected tax benefit using the federal statutory rate of 34% and state statutory rate of 5.0% for 2017 and 2016 is as follows:
| 2017 | 2016 | |||||||
| Income tax benefit at federal statutory rate | (34.00 | )% | (34.00 | )% | ||||
| State income tax benefit, net of effect on federal taxes | (5.00 | )% | (5.00 | )% | ||||
| Valuation allowance | 39.00 | % | 39.00 | % | ||||
| Effective rate | 0.00 | % | 0.00 | % | ||||