Note 6. Income Taxes

The Company uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes.

During the years ended February 28, 2017 and February 29, 2016, the Company incurred net losses, and therefore, had no tax liability. The net deferred asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately$872,980 and $466,904, respectively as of February 28, 2017 and February 29, 2016 and will expire in years 2020 through 2036.

Deferred tax assets consist of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its ability to be realized.

As of the years ended February 28, 2017 and February 29, 2016, deferred tax assets consisted of the following: