NOTE 9 - INCOME TAXES

The Company had no income tax expense due to operating losses incurred for the years ended March 31, 2017 and 2016.

The difference between the statutory federal tax rate of 34% and the effective tax rate is summarized below:

The tax effects of temporary differences that give rise to the Company’s deferred tax assets and liabilities are as follows:

At March 31, 2016 and 2017, the Company has provided a full valuation allowance against its net deferred assets since realization of these benefits is not more likely than not.  At March 31, 2017, the Company had federal and state net operating loss tax carryforwards of approximately $1.9million. These net operating loss carryforwards expire in various amounts starting in 2029.  The utilization of the federal and state net operating loss carryforwards will depend on the Company’s ability to generate sufficient taxable income prior to the expiration of the carryforwards. In addition, the maximum annual use of net operating loss is limited in certain situations where changes occur in stock ownership.

As of March 31, 2016 and 2017, the Company had no unrecognized tax benefits.  To date, no tax returns have been filed by the Company. NOLs cannot be used against future income until returns are filed.  Until those tax returns are filed by the Company, all tax years will remain open to examination by federal tax and state tax jurisdictions. No income tax returns are currently under examination by taxing authorities.