NOTE E – INCOME TAXES
Due to the Company’s net loss from inception on April 20, 2013 to May 31, 2017 there was no provision for income taxes recorded. As a result of the Company’s losses to date, there exists doubt as to the ultimate realization of the deferred tax assets. Accordingly, a valuation allowance equal to the total deferred tax assets has been recorded at May 31, 2017.
The components of net deferred tax assets are as follows:
| Income tax provision at the federal statutory rate | 35 | % | ||
| Effect on operating losses | (35 | %) | ||
| — | ||||
Changes in the net deferred tax assets consist of the following:
| May 31, 2017 | May 31, 2016 | |||||||
| Net operating loss carry forward | 23,315 | 17,858 | ||||||
| Valuation allowance | (23,315 | ) | (17,858 | ) | ||||
| Net deferred tax asset | — | — | ||||||
A reconciliation of income taxes computed at the statutory rate is as follows:
| May 31, 2017 | May 31, 2016 | |||||||
| Income tax (expense) benefit at statutory rate | 5,457 | 10,041 | ||||||
| Change in valuation allowance | (5,457 | ) | (10,041 | ) | ||||
| Income tax expense | — | — | ||||||
The Company did not identify any material uncertain tax positions. The Company did not recognize any interest or penalties for unrecognized tax benefits.