Deferred income taxes arise from the temporary differences between financial statement and income tax recognition of net operating losses. We note that these loss carryovers are limited under the Internal Revenue Code should a significant change in ownership occur.
The types of temporary differences between the tax basis of assets and their financial reporting amounts that give rise to a significant portion of the deferred assets and liabilities are as follows:
June 30, 2017 |
June
30, 2016 |
|||||||
| Deferred tax assets: | ||||||||
| Net operating loss | $ | 183,476 | $ | 14,879 | ||||
| Valuation allowance | (183,476 | ) | (14,879 | ) | ||||
| Total deferred tax assets | $ | - | $ | - | ||||
At June 30, 2017 and 2016, the Company had $539,636 and $42,854, respectively, in unused federal net operating loss carry-forwards, which begin to expire in the year 2035. The deferred tax asset at each date of approximately $183,476 and $14,879 resulting from the loss carry-forwards has been offset by a 100% valuation allowance because of the uncertainty regarding its realization.
The Company did not have any taxable income for the years ended June 30, 2017 and 2016.