NOTE 6 – INCOME TAXES

The provision for income taxes for the years ended September 30, 2017 and 2016 was as follows (assuming a 15% effective tax rate):

The Company’s net deferred tax assets and total losses since inception as of September 30, 2017 and 2016 were as follows:

The Company provided a valuation allowance equal to the deferred income tax assets for years ended September 30, 2017 and 2016 because it is not presently known whether future taxable income will be sufficient to utilize the loss carry-forwards.

As of September 30, 2017, the Company had $515,451 in net operating loss carry-forwards that can be utilized in future periods to reduce taxable income. However, due to changes in stock ownership, the use of the U.S. net operating loss carry-forwards is limited under Section 382 of the Internal Revenue Code. The potential tax benefit arising from the loss carry-forwards will expire in fiscal years 2033 through 2037.

The Company did not identify any material uncertain tax positions. The Company did not recognize any interest or penalties for unrecognized tax benefits. The federal and state income tax returns of the Company are subject to examination by the Internal Revenue Service (“IRS”) and state tax authorities, generally for three years after they are filed. The Company’s 2015, 2016 and 2017 Corporate Income Tax Returns are subject to IRS and state examination.