We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. Pursuant to FASB ASC Topic 740, when it is more likely than not that a tax asset cannot be realized through future income, the Company must provide an allowance for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry-forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry-forward period.

The sources and tax effects of the temporary differences for the periods presented are as follows:

This represents an increase in the net operating loss carry forward of $22,298 and $430,501 for the years ended December 31, 2016 and 2015. A reconciliation of income taxes computed at the United States federal statutory rate of 35% to the income tax recorded is as follows:

This represents an increase in the valuation allowance of $14,654 and $114,083 for the years ended December 31, 2016 and 2015. The Company did not pay any income taxes during the years ended December 31, 2016 or 2015, or since inception.

The net federal operating loss carry forward will begin to expire in 2026.  This carry forward may be limited upon the consummation of a business combination under IRC Section 381. Tax years commencing in 2012 remain open for examination by the IRS, where applicable.