Note 4 - Income Tax Provision

3 Months Ended

12 Months Ended

Mar. 31, 2017

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

4.

     Income Tax Provision

No

income tax expense or (benefit) has been reflected for the quarters ended

March 31, 2017

and

2016

due to the lack of taxable net income generated by the Company and the

100%

valuation allowance pertaining to the deferred tax asset. The difference between the reported amount of income tax expense and the amount expected based upon statutory rates is primarily due to the increase in the valuation allowance on deferred taxes.

The net operating loss carryforwards for the Company are

$5,250,492

 and

$5,050,176

as of

March 31, 2017

and

December 31, 2016,

respectively. The components of the deferred tax assets and liabilities due to book and tax differences are the following: fixed asset depreciation, net operating loss carryforward, net unrealized losses on investment securities, policyholder benefit reserves and deferred acquisition costs. The net deferred tax asset is offset

100

percent by the valuation allowance.

Note

4.

     Income Tax Provision

No

income tax expense or (benefit) has been reflected for the years ended

December 31, 2016

and

2015

due to the lack of taxable net income

generated by the Company and the

100

%

valuation allowance pertaining to the deferred tax asset. The difference between the reported amount of income tax expense and the amount expected based upon statutory rates is primarily due to the increase in the valuation allowance on deferred taxes.

The net operating loss carryforwards for the Company are

$5,050,176

and

$3,940,774

as of

December 31, 2016

and

2015,

respectively. The components of the deferred tax assets and liabilities due to book and tax differenc

es are the following: fixed asset depreciation, net operating loss carryforward, net unrealized losses on investment securities, policy owner benefit reserves and deferred acquisition costs. The net deferred tax asset is offset

100

percent by the valuation allowance.