Entity information:
NOTE 
10
 - INCOME TAXES
 
At
March 31, 2017,
the Company had federal and state net operating loss carry-forwards, (NOL’s) of approximately
$2,288,000,
which are due to expire through fiscal
2033.
These NOLs
may
be used to offset future taxable income through their respective expiration dates and thereby reduce or eliminate our federal and state income taxes otherwise payable. A valuation allowance is provided when it is more likely than
not
that some portion or all of the deferred tax assets will
not
be realized. Ultimate utilization of such NOL’s and credits is dependent upon the Company’s ability to generate taxable income in future periods and
may
be significantly curtailed if a significant change in ownership occurs.
 
Significant components of deferred tax assets are as follows as of 
March 31, 2017
and
2016:
 
 
   
2017
    
2016
  
                 
Deferred tax assets (liabilities):
                
Net operating loss carry-forward
   $
915,000
    $
1,407,000
 
Stock based compensation
    
279,000
     
239,000
 
Other
    
11,000
     
11,000
 
Deferred tax assets
    
1,205,000
     
1,657,000
 
Valuation allowance
    
(279,000
 )    
(800,000
 )
                 
Deferred tax asset, net
   $
926,000
    $
857,000
 
 
 
The change in the valuation allowance for the year ended
March 31, 2016
decreased by
$929,000.
 
The benefit from income taxes for the years ended at
March 31, 2017
and
2016
differs from that amount using the statutory federal income tax rate as follows:
 
   
2017
    
2016
  
                 
Statutory federal income tax rate
    
34
%
    
34
%
Change in valuation allowance
    
(40
%)
    
(362
%)
Effective income tax rate
    
(6
%)
    
(328
%)