(6) INCOME TAXES

The components of the Company’s deferred tax asset as of December 31, 2017 and 2016 are as follows:

A reconciliation of income taxes computed at the statutory rate to the income tax amount recorded is as follows:

As of December 31, 2017, the Company had approximately $284,749 of federal and state net operating loss carryovers (“NOLs”) which begin to expire in 2036. Utilization of the NOLs may be subject to limitation under the Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under regulations.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized

The Company files income tax returns in the United States federal jurisdiction and certain states in the United States. No tax returns are currently under examination by any tax authorities.