As of March 31, 2017, the Company had net operating loss carry forwards of approximately $12,444,769 that may be available to reduce future years’ taxable income in varying amounts through 2034. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
The provision for Federal income tax consists of the following for the years ended March 31, 2017 and 2016:
| March 31, 2017 | March 31, 2016 | ||||||
| Federal income tax benefit attributable to: | |||||||
| Current operations | $ | 1,102,052 | $ | 601,276 | |||
| Less: valuation allowance | (1,102,052 | ) | (601,276 | ) | |||
| Net provision for Federal income taxes | $ | — | $ | — | |||
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows as of March 31, 2017 and 2016:
| March 31, 2017 | March 31, 2016 | ||||||
| Deferred tax asset attributable to: | |||||||
| Net operating loss carryover | $ | 4,231,221 | $ | 3,129,170 | |||
| Less: valuation allowance | (4,231,221 | ) | (3,129,170 | ) | |||
| Net deferred tax asset | $ | — | $ | — | |||
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $12,444,769 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.