Note 8 – 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.  As of March 31, 2017, the Company has incurred a net loss of approximately $255,498 which resulted in a net operating loss for income tax purposes.  NOLs begin expiring in 2033.  The loss results in a deferred tax asset of approximately $89,424 at the effective statutory rate of 35%.  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:

Note: The Company has not yet filed its March 31, 2017 and 2016 tax returns.