Income Tax

12 Months Ended

Jul. 31, 2016

Income Tax [Abstract]

INCOME TAX

8. INCOME TAX

We are subject to taxation in the U.S. and the State of Nevada. The Company is not current on its tax filings and is subject to examination until those filings take place.

The Company has no current or deferred income tax liability due to its operating losses.

The Company has federal net operating loss carryforwards totaling approximately $1,000,000 and $800,000 at July 31, 2016 and 2015, respectively. Subject to certain limitations (including limitations under Section 382 of the Internal Revenue Code), the carryforwards are available to offset future taxable income through 2036. The amount of change in the deferred tax asset and the related valuation allowance was approximately $68,000 and $102,000 for the years ending July 31, 2016 and 2015, respectively.

Estimated deferred tax assets totaled $340,000 and $272,000 at July 31, 2016 and 2015, respectively. A 100% valuation allowance has been recorded to offset the deferred tax assets, due to uncertainty of the Company’s ability to generate future taxable income, in the amount of $374,000, resulting in a net deferred tax asset of $0.

We have analyzed the filing positions in all jurisdictions where we are required to file income tax returns and found no positions that would require a liability for unrecognized income tax positions be recognized.