Note

December 22, 2017,

Tax Cuts and Jobs Act (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are limited to, a corporate tax rate decrease from to effective for tax years beginning after We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction in the U.S. corporate income tax rate from to under the Tax Act, we revalued our ending net deferred tax assets at which were fully offset by a valuation allowance. The Company has evaluated the other changes resulting from the Tax Act and does expect them to have a material impact on the tax provision, therefore, the company considers the accounting complete.

December 31,

the Company has net operating loss carry-forwards of approximately that begin to expire in Pursuant to Sections and of the Internal Revenue Code, the utilization of NOLs and other tax attributes be subject to substantial limitations if certain ownership changes occur during a -year testing period (as defined by the Internal Revenue Code). A valuation allowance was established for all the net deferred tax assets because realization is assured. The components of the deferred tax assets consist of the following: