As of December 31, 2019, the Company had net operating loss carry forwards of approximately $4,628,000 that may be available to reduce future years’ taxable income in varying amounts through 2033. 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 provision for Federal income tax consists of the following for the years ended December 31, 2019 and 2018:

	2019			2018
Federal income tax benefit attributable to:
Current operations	$	219,897		$	537,475
Less: valuation allowance		(219,897	)		(537,475	)
Net provision for Federal income taxes	$	-		$	-

The cumulative tax effect at the expected rate of 21% (2018: 21%) of significant items comprising our net deferred tax amount is as follows at December 31, 2019 and 2018:

	December 31, 2019			December 31, 2018
Deferred tax asset attributable to:
Net operating loss carryover	$	971,797		$	925,619
Less: valuation allowance		(971,797	)		(925,619	)
Net deferred tax asset	$	-		$	-

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $4,628,000 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.