Annual report pursuant to Section 13 and 15(d)

Income Taxes

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Income Taxes
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 7 – INCOME TAXES

 

Due to operating losses, there is no required provision for federal or state income taxes for the years ended December 31, 2017 or 2016. At December 31, 2017, the Company had federal and state net operating loss carry forwards of approximately $4.1 million.

 

The Company’s deferred tax asset at December 31, 2017 consisted of a net operating loss calculated using federal and state effective tax rates, equating to approximately $1,753,000, which was fully offset by a valuation allowance as shown in the following table:

 

Deferred tax asset   $ 1,753,000  
Valuation allowance     (1,753,000 )
Net deferred tax asset   $ —  

 

The reconciliation of income taxes computed at the federal and state statutory income tax rate to total income taxes for the periods ended December 31, 2017 and 2016 was as follows:

 

    2017     2016  
Income tax computed at the federal statutory rate     34 %     34 %
Income tax computed at the state statutory rate     5 %     5 %
Valuation allowance     (39 )%     (39 )%
Total deferred tax asset     0 %     0 %