NOTE 4 – INCOME TAXES

At March 31, 2015 and 2014, the Company had net deferred tax assets of approximately $553,000 and $436,000 principally arising from net operating loss carryforwards for income tax purposes. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the net deferred tax asset, a valuation allowance equal to the net deferred tax asset has been established at March 31, 2015 and 2014. At March 31, 2015, the Company has net operating loss carry forwards totaling approximately $1,626,000 which will begin to expire in 2023.

Income tax provision (benefit) for the years ended March 31, 2015 and 2014 is summarized below:

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate before provision for income taxes. The sources and tax effect of the differences are as follows:

Components of the net deferred income tax assets at March 31, 2015 and 2014 were as follows:

ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of evidence, it is more than likely than not that some portion or all of the deferred tax assets will not be recognized. After consideration of all the evidence, both positive and negative, management has determined that a $553,000 and $436,000 allowance at March 31, 2015 and 2014, respectively, is necessary to reduce the deferred tax assets to the amount that will more likely than not be realized. The change in the valuation allowance for the current year is $117,000.

As of March 31, 2015, we have a net operating loss carry forward of approximately $553,000. The loss will be available to offset future taxable income. If not used, this carry forward will expire as follows:

As of March 31, 2015 we did not have any significant unrecognized uncertain tax positions.