Income Taxes

12 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Note 8 - Income Taxes

As of June 30, 2016, the Company had no accrued interest and penalties related to uncertain tax positions. The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rates of 35% (2015 - 35%) to pretax loss from operations for the years ended June 30, 2016 and 2015 due to the following:

	For the Years Ended
	June 30,
	2016			2015
Loss before income taxes	$	2,497,765		$	1,012,435
Expected income tax recovery		(874,218	)		(354,352	)
Other permanent difference		22,428			57,481
Change in valuation allowance		851,790			296,871
Total	$	-		$	-

Deferred tax assets and the valuation account are as follows:

	For the Years Ended
	June 30,
	2016			2015
Deferred tax asset:
Net operating loss carry forward	$	4,246,555		$	4,185,198
Other deferred tax assets		941,639			151,206
Valuation allowance		(5,188,194	)		(4,336,404	)
Total	$	-		$	-

The components of income tax expense are as follows:

	For the Years Ended
	June 30,
	2016			2015
Current Federal tax	$	-		$	-
Current State tax		-			-
Change in NOL benefit		851,790			296,871
Change in valuation allowance		(851,790	)		(296,871	)
Total	$	-		$	-

The potential income tax benefit of these losses has been offset by a full valuation allowance.

As of June 30, 2016 and 2015, the Company has an unused net operating loss carry-forward balance of $11,700,997 and $11,957,709 that is available to offset future taxable income. This unused net operating loss carry-forward balance begins to expire in 2031.

The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.

The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended June 30, 2016, 2015, 2014, 2013, 2012 and 2011.