Income Taxes

 

Deferred income tax assets and liabilities are computed annually for differences between financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.

 

The significant components of deferred tax assets and liabilities are as follows:

 

The net change in the valuation allowance for the year ended was

 

We have a net operating loss carryover of available to offset future income for income tax reporting purposes, which will expire in various years through if not previously utilized. However, our ability to use the carryover net operating loss be substantially limited or eliminated pursuant to Internal Revenue Code Section 

 

Our policy regarding income tax interest and penalties is to expense those items as general and administrative expense but to identify them for tax purposes. During the years ended and there was income tax or related interest and penalty items in the income statement, or liabilities on the balance sheet. We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal income tax examinations by tax authorities for years beginning or state income tax examination by tax authorities for years beginning We are not currently involved in any income tax examinations.