NOTE 4 - INCOME TAXES

The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the period presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years.

For the years ended September 30, 2017 and 2016, the Company has incurred net losses of approximately $31,640 and $30,326, respectively, which resulted in a net operating loss for income tax purposes. NOLs begin expiring in 2035. The losses result in a deferred tax asset of approximately $24,438 and $13,680 as of September 30, 2017 and 2016, respectively, at the effective statutory rate of 34%. The deferred tax asset has been off-set by an equal valuation allowance.

The reconciliation of the effective income tax rate to the federal statutory rate is as follows:

Accounting for Uncertainty in Income Taxes

The Company has evaluated and concluded that there is no significant uncertain tax position requiring recognition in its financial statement.

The Company may from time to time be assessed interest or penalties by major tax jurisdictions. In the event it receives an assessment for interest and/or penalties, it will be classified in the financial statements as tax expense.