INCOME TAXES

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

NOTE 7. INCOME TAXES

The Company has generated taxable losses for the periods presented. Accordingly, no provisions for income taxes have been recorded.

The Company’s effective tax rate differs from the United States Federal income tax rate as follows:

	Three Months Ended  June 30,						Six Months Ended  June 30,
	2017			2016			2017			2016
Corporate Federal income tax at 35%	$	(32,939	)	$	(18,488	)	$	(96,146	)	$	(338,674	)
Non-deductible stock-based compensation		22,050			-			27,300			303,448
Non-deductible stock-based costs related to terminated acquisitions		-			-			52,500			-
Non-deductible (non-taxable) foreign exchange (gain) loss		5,494			(335	)		7,139			14,209
Change in valuation allowance		5,395			18,823			9,207			21,017
Provision for Income Taxes	$	-		$	-		$	-		$	-

At June 30, 2017, the Company has net operating loss carryforwards which expire from 2028 to 2037. The deferred tax asset relating to these net operating loss carryforwards has been fully reserved for at June 30, 2017 since management’s assessment has not yet determined it to be more likely than not that the net operating loss carryforwards will be realized.

Current United States income tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited.