NOTE 4 - INCOME TAXES

As of May 31, 2017, the Company had a net operating loss (“NOL”) carry-forward for income tax reporting purposes of approximately $362,000 that may be offset against future taxable income through 2036. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. No tax benefit has been reported in the financial statements, because the Company believes there is a 50% or greater chance that the realization of the Company’s net deferred tax assets resulting from NOL carry-forwards will expire unused. Accordingly, the potential tax benefits of the loss carry-forwards are offset by a valuation allowance of the same amount.

Components of deferred tax assets are as follows:

The provision for income taxes differ from the amount computed using the federal US statutory income tax rate for the year ended May 31, 2017 and 2016 is as follows:

The Company evaluates its valuation allowance requirements based on projected future operations. When circumstances change and cause a change in management’s judgment about the recoverability of deferred tax assets, the impact of the change on the valuation is reflected in current income.

Years 2016, 2015 and 2014 remain open for tax examinations, although the company has not been notified of any such examinations.