| 6. | INCOME TAXES |
For the years ended December 31, 2016, and 2015, there was no provision for income taxes, current or deferred.
At December 31, 2016, we have a federal net operating loss carry forward of approximately $41,042 available to offset future taxable income through 2036.
At December 31, 2016, and 2015, we have state net operating loss carryforwards of approximately $41,042 available to offset future losses through 2036. We established valuation allowances equal to the full amount of the deferred tax assets because of the uncertainty of the utilization of the operating losses in future periods. We periodically assess the likelihood that we will be able to recover the deferred tax assets. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income.
Our deferred tax asset and liability as presented in the accompanying consolidated financial statements consist of the following:
| 2016 | 2015 | |||||||
| Deferred Income Tax Assets: | ||||||||
| Net operating losses | $ | 41,042 | $ | 2,328 | ||||
| Total deferred income tax asset | 41,042 | 2,328 | ||||||
| Valuation allowance | (41,042 | ) | (2,328 | ) | ||||
| Deferred Income Tax Assets, net | $ | 0 | $ | 0 | ||||
A reconciliation between taxes computed at the federal statutory rate and the consolidated effective tax rate is as follows:
| 2016 | 2015 | |||||||
| Federal statutory tax rate | 34.0 | % | 34.0 | % | ||||
| State tax rate, net of federal tax benefit | 6.0 | % | 6.0 | % | ||||
| Adjustment in valuation allowances | (12.5 | )% | (40.0 | )% | ||||
| Stock Based Compensation | (27.5 | )% | (0.0 | )% | ||||
| Provision (Benefit) for Income Taxes | -0- | % | -0- | % | ||||