The Company had federal NOL carry forwards of approximately $5.7 million, resulting in a deferred tax asset of approximately $2.2 million, at March 31, 2017. The NOL is available to offset future taxable income and begins to expire in 2035. Under Section 382 of the Internal Revenue Code, the NOL may be limited as a result of a change in control. At March 31, 2017, the Company established valuation allowances equal to the full amount of the net deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods.

For the years ended March 31, 2017 and 2016, no amounts have been recognized for uncertain tax positions and no amounts have been recognized related to interest or penalties related to uncertain tax positions. The Company has determined that it is not reasonably likely for the amounts of unrecognized tax benefits to significantly increase or decrease within the next 12 months.