The Company has losses carried forward for income tax purposes for December 31, 2016. There are no current or deferred tax expenses for the period ended December 31, 2016 due to the Company’s loss position. The Company has fully reserved for any benefits of these losses. The deferred tax consequences of temporary differences in reporting items for financial statement and income tax purposes are recognized, as appropriate. Realization of the future tax benefits related to the deferred tax assets is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carry forward period. 

Management has considered these factors in reaching its conclusion as to the valuation allowance for financial reporting purposes.

The net federal operating loss carry forward will expire beginning 2030. This carry forward may be limited upon the consummation of a business combination under IRC Section 381. The Company has no uncertain tax position.