Income Taxes

6 Months Ended

Mar. 31, 2018

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 Six
	Months Ended
	March 31,
	2018			2017
Expected income tax (benefit) at statutory rates of 21% and 34%, respectively	$	356,200		$	(2,183,000	)
Change in non-deductable expenses		(551,000	)		2,155,800
Change in valuation allowance		194,800			27,200
	$	-		$	-

The Company had a federal net operating tax loss carry-forward of approximately $3,268,000 as of March 31, 2018. The tax loss carry-forwards are available to offset future taxable income with the federal carry-forwards beginning to expire in 2033.

At March 31, 2018 the deferred tax valuation allowance increased by $148,600 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 March 31, 2018 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 six months ended March 31, 2018 and 2017, 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.