NOTE 15 - INCOME TAXES

The Company had no current or deferred provision (benefit) for income taxes for the three months ended September 30, 2017 or September 30, 2016. The income tax provision for the three months ended September 30, 2017 and September 30, 2016 was determined by applying an estimated annual effective tax rate of 0.0% to the loss before income taxes. The estimated effective income tax rate was determined by applying statutory tax rates to pretax loss adjusted for certain permanent book to tax differences and tax credits, and the continuing assessment of a valuation allowance against all of the deferred income tax assets that will not be realized in the foreseeable future. Deferred income tax assets are reviewed for recoverability based on historical taxable income, the expected reversals of existing temporary differences, tax planning strategies and projections of future taxable income. As a result of this analysis, the Company has provided for a valuation allowance against its net deferred income tax assets as of September 30, 2017 and June 30, 2017.