Note 4 - Income Tax Provision

3 Months Ended

Mar. 31, 2019

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, 2019

or

2018

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

$13,178,265

 and

$12,938,533

as of

March 31, 2019

and

December 31, 2018,

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 gains (losses) on investment securities, policyowner benefit reserves and deferred acquisition costs. The net deferred tax asset is offset

100

percent by the valuation allowance.