Note 8 – Income Taxes
The Company is a subsidiary of Sack Lunch Productions, Inc. that files a consolidated income tax return. The Company follows ASC 740, under which deferred income taxes reflect the net effect of (a) temporary difference between carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry-forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of loss because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry-forward has been recognized, as it is not deemed likely to be realized. The cumulative net operating loss and the cumulative tax effect at the expected composite rate of 39 percent of significant items comprising our net deferred tax amount is as follows:
The cumulative net operating loss and the cumulative tax effect at the expected composite rate of 39 percent of significant items comprising our net deferred tax amount is as follows:
| December 31, | |||||
| 2016 | 2015 | ||||
| Cumulative net operating loss | (3,791,881) | (3,831,190) | |||
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| December 31, | |||||
| 2016 | 2015 | ||||
| Deferred Tax assets: |
|
| |||
| Net operating loss carry forwards | (1,478,834) | (1,494,163) | |||
| Valuation allowance | 1,478,834 | 1,494,163 | |||
|
| - | - | |||
| December 31, | |||||
|
| 2016 | 2015 | |||
| Book income (loss) from operations | (298,460) | (344,972) | |||
| Meals and Entertainment | 4,725 | 3,290 | |||
| Donations | 10,451 | 3,237 | |||
| Change in derivative liability | (51,314) | 33,927 | |||
| Stock options issued for services | - | 54,718 | |||
| Accrued expenses- officer | 8,750 | - | |||
| Change in valuation allowance | 325,848 | 249,800 | |||
|
| - | - | |||