Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has a net loss of $691,739 as of March 31, 2017 and a net loss of $1,402,141 as of March 31, 2016. The following table shows the net deferred tax benefit:

The tax asset benefits for the net operating losses carried forward for future years are $2,232,519 and $1,619,000 respectively, for the years ended March 31, 2017 and March 31, 2016, respectively.

Pursuant to ASC 740, the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses has not been recognized in these financial statements because the Company cannot be assured it is more likely-than-not it will utilize the net operating losses carried forward in future years which will start to expire in the year of 2031.

Tax returns for the years since 2014 are still open; the provision for unpaid federal income taxes reflected in the balance sheet is adequate to cover any additional assessments resulting from examinations already made or from those to be made by the Service.