At February 28, 2017, the Company had unused federal and state net operating loss carryforwards available of approximately $701,070, which may be applied against future taxable income, if any, and which expire in various years through 2037.
This loss carry forward expires according to the following schedule:
| Year Ending February 28, 2017 | Amount | |||
| 2034 | $ | 54,197 | ||
| 2035 | - | |||
| 2036 | 539,420 | |||
| 2037 | 107,453 | |||
| Total | $ | 701,070 | ||
The following is a reconciliation of the tax provision as calculated at the statutory tax rate to the provision as recognized for the years ended February 28, 2017 and February 29, 2016:
| 2017 | 2016 | |||||||
| Tax provision at statutory rates | $ | (273,382 | ) | $ | (291,875 | ) | ||
| Effect of permanent difference(s) | 165,424 | 44,541 | ||||||
| Change in valuation allowance | 107,958 | 247,334 | ||||||
| Net tax expense | $ | - | $ | - | ||||
There were permanent differences and temporary differences to reconcile the tax provision for the years ended February 28, 2017 and February 29, 2016, other than the change in valuation allowance of $107,958 and $247,334 respectively. All tax years from inception remain open for examination by the tax authorities.
| 2017 | 2016 | |||||||
| Net book income (loss) | $ | (781,094 | ) | $ | (833,931 | ) | ||
| Permanent difference(s): | ||||||||
| Share based compensation | 420,700 | 105,000 | ||||||
| Change in Derivative Liability | 2,494 | 17,920 | ||||||
| Amortization of Debt Discount | 49,447 | 4,341 | ||||||
| Temporary difference(s): | ||||||||
| Accrued officer compensation | 201,000 | 167,250 | ||||||
| Taxable income | $ | (107,453 | ) | $ | (539,420 | ) | ||