INCOME TAXES

As of April 30, 2017 and 2016 the Company had net operating loss carry forwards of $0 and $814, respectively that may be available to reduce future years’ taxable income through 2036. 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 valuation allowance as of June 30, 2017 and 2016 was $0 and $277, respectively. The net change in valuation allowance during the year ended April 30, 2017 and 2016 was $(277) and $277, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.  Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of April 30, 2016.  All tax years since inception remains open for examination by taxing authorities.

The provision for Federal income tax consists of the following: 

The following table displays a reconciliation from the U.S. statutory rate to the effective tax rate and the provision for

(benefit from) income taxes for the years ended April 30, 2017 and 2016, respectively: