INCOME TAXES

9 Months Ended

May 31, 2019

Notes to Financial Statements

INCOME TAXES

As of May 31, 2019, the Company had no net operating loss carry forwards. Due to the change in control during the year, the Company determined there are no loss carry forward amounts.

On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Act”) resulting in significant modifications to existing law. The Company has completed the accounting for the effects of the Act. The Company’s financial statements for the nine months ended May 31, 2019 reflect certain effects of the Act which includes a reduction in the corporate tax rate from 35% to 21% as well as other changes.

Components of net deferred tax assets, including a valuation allowance, are as follows as of May 31, 2019 and August 31, 2018:

	May 31,   2019			August 31, 2018
Deferred tax asset attributable to:
Net operating loss carry over	$	263,819		$	149,948
Less: valuation allowance		(263,819	)		(149,948)
Net deferred tax asset	$	—		$	—

The valuation allowance for deferred tax assets was $263,819 as of May 31, 2019 and $149,948 as of August 31, 2018. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of May 31, 2019 and August 31, 2018.

Reconciliation between the statutory rate and the effective tax rate is as follows at May 31, 2019 and August 31, 2018:

	2019			2018
Federal statutory tax rate		21	%		21%
Change in valuation allowance		(21	%)		(21%)
Effective tax rate		0	%		0%