Income Taxes

3 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Note 8 - Income Taxes

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

	For the Three
	Months Ended
	December 31,
	2017			2016
Expected income tax (benefit) at statutory rates of 21% and 34%, respectively	$	399,400		$	(77,600	)
Change in non-deductable expenses		(477,800	)		-
Change in valuation allowance		78,400			77,600
	$	-		$	-

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, 2017			September 30, 2017
Tax benefit of net operating loss carry-forward	$	616,100		$	537,700
Book and tax difference for amortization of intangibles		48,400			48,400
Less: valuation allowance		(664,500	)		(586,100	)
Net deferred tax asset	$	0		$	0

The Company had a federal net operating tax loss carry-forward of approximately $2,933,900 as of December 31, 2017. 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, 2017 the deferred tax valuation allowance increased by $143,800 from September 30, 2017. 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, 2017 and September 30, 2017, 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, 2017 and 2016, 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.