We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. Per the authoritative literature when it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carryforward period.

The Company has not taken any tax positions that, if challenged, would have a material effect on the financial statements for the twelve-months ended May 31, 2017 and 2016. The Company’s tax returns for the fiscal years ended May 31 of 2010 to 2016 remain subject to examination by the tax authorities.

The components of the Company's deferred tax asset as of May 31, 2017 and 2016 are as follows:

A reconciliation of income taxes computed at the statutory rate to the income tax amount recorded is as follows:

The net federal operating loss carry forward will expire between 2028 and 2036. This carry forward may be limited upon the consummation of a business combination under IRC Section 381.