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. When it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax assets, consisting of net operating loss carryforwards and intangible assets, 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 carryforward period.

The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the years ended March 31, 2017 and 2016, respectively, under ASC 740. We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the balance sheet.

The Company is subject to United States income taxes at a rate of 34%. Operating loss carry forwards totaled approximately $1,785,000 and $1,504,000, as of March 31, 2017 and 2016, respectively, and will begin to expire in 2032. Deferred tax assets of approximately $953,200 and $511,500, respectively, were offset by a valuation allowance.

Actual income tax expense for the years ended March 31, 2017 and 2016 is reconciled from the amount computed by applying the U.S. federal income tax rate of 34% to losses before income taxes as follows: