NOTE 5 – INCOME TAXES

The Company had no income tax expense (benefit) for the years ended June 30, 2017 and 2016. At June 30, 2017, the Company’s accumulated net operating loss carry-forwards for federal and state income purposes was approximately $1,230,800. These losses are available for future years and expire through June 2037. Utilization of these losses may be severely or completely limited if the Company undergoes an ownership change pursuant to Internal Revenue Code Section 382. At June 30, 2017 and 2016, the Company had deferred tax assets of approximately $428,000 and $398,000, respectively, principally arising from net operating loss carryforwards for income tax purposes. The Company has determined it is more likely than not that these timing differences will not materialize and provide a full valuation allowance against all of the deferred tax assets.