Income Taxes

3 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Note 7 - Income Taxes

The difference between the expected income tax expense (benefit) and the actual tax expense (benefit) computed by using the Federal statutory rate of 34% is as follows:

	For the Three Months Ended December 31,
	2016			2015
Expected income tax benefit at statutory rate of 34%	$	77,800		$	62,800
Change in valuation allowance		(77,800	)		(62,800	)
Income tax expense (benefit)	$	0		$	0

Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset, are as follows:

Deferred tax assets:	December 31, 2016			September 30, 2016
Tax benefit of net operating loss carry-forward	$	643,000		$	568,900
Book and tax difference for amortization of intangibles		52,000			48,400
Less: valuation allowance		(695,000	)		(617,300	)
Net deferred tax asset	$	0		$	0

The Company had a federal net operating tax loss carry-forward of approximately $1,673,210 as of December 31, 2016. The tax loss carry-forwards are available to offset future taxable income with the federal carry-forwards beginning to expire in 2033.

At December 31, 2016 the deferred tax valuation allowance increased by $62,800 from September 30, 2016. The realization of the tax benefits is subject to the sufficiency of taxable income in future years. The deferred tax assets represent the amounts expected to be realized before expiration. The Company periodically assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible profits. As of December 31, 2016 and September 30, 2016, the Company established valuation allowances equal to the full amount of the net deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods.

During the three months ended December 31, 2016 and 2015, no amounts have been recognized for uncertain tax positions and no amounts have been recognized related to interest or penalties related to uncertain tax positions. The Company has determined that it is not reasonably likely for the amounts of unrecognized tax benefits to significantly increase or decrease within the next twelve months. The Company is currently subject to a three year statute of limitations by major tax jurisdictions.