NOTE 9 - INCOME TAXES

The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. As of April 30, 2016, the Company has incurred net losses of approximately $429,536, resulting in a net operating loss (“NOL”) for income tax purposes. NOLs begin expiring in 2032. The loss results in a deferred tax asset of approximately $216,100 at the effective statutory rate of 35%. The deferred tax asset has been off-set by an equal valuation allowance.

The tax effects of temporary differences and carry forwards that give rise to significant portions of the deferred income tax assets are as follows:

The reconciliation of the effective income tax rate to the federal statutory rate is as follows:

The utilization of these NOLs may become subject to limitations based on past and future changes in ownership of the company pursuant to Internal Revenue Code Section 382. The Company has no uncertain tax positions as of April 30, 2016.

Tax returns for the years ended April 30, 2011 through April 30, 2016 remain open to examination.