Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income. As

the achievement of required future taxable income is uncertain, the Company recorded a valuation allowance. As of December 31, 2019 the Company had a net operating loss carry-forward of approximately $559,606. Net operating loss carry-forward, expires twenty years from the date the loss was incurred.

	December 31,			December 31,
	2019			2018
Net operating loss Carry Forward	$	559,606		$	437,796
Valuation allowance	$	(559,606	)	$	(437,796	)

The Company is subject to United States federal and state income taxes at an approximate rate of 34%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company's income tax expense as reported is as follows:

Free Flow, Inc.
Tax Calculations
	December 31,			December 31,
	2019			2018
Net (profit) loss before taxes per financial statement	$	(121,810	)	$	19,967
Income tax rate		34	%		34	%
Income tax benefit		(41,415	)		(6,789	)
Valuation allowance change		41,415			(17,406	)
Provision for income tax		0			0

The December 31, 2017 was reported as $82,853 and had been reduced to $81,183 as depreciation was not provided for in the previous year which has now been provided by adjustment to the appropriate account.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred income taxes arise from temporary differences in the recognition of income and expenses for financial reporting and tax purposes. The significant components of deferred income tax assets and liabilities at December 31, 2019 and December 31, 2018 are as follows:

Net deferred income tax asset - - The Company has recognized a valuation allowance for the deferred income tax asset since the Company cannot be assured that it is more likely than not that such benefit will be utilized in future years. The valuation allowance is reviewed annually. When circumstances change, and which cause a change in management's judgment about the realizability of deferred income tax assets, the impact of the change on the valuation allowance is generally reflected in current income.