5.	INCOME TAX

The Company is subject to US Federal tax laws. The Company has not recognized an income tax benefit for its operating losses based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. Further, the benefit from utilization of NOL carryforwards could be subject to limitations due to material ownership changes that could occur in the Company as it continues to raise additional capital. Based on such limitations, the Company has significant NOLs for which realization of tax benefits is uncertain. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not.

As of December 31, 2016, and September 30, 2016, the Company has accumulated net losses of $95,706,149 and $95,627,657, respectively. The deferred tax assets will begin to expire in 2025.

The net losses before income taxes and its provision for income taxes as follows:

	For the three-month ended December 31,
	2016			2015

Net loss before income tax	$	(78,492	)	$	(13,670	)

Tax expenses (benefit) at the statutory tax rate		(26,687	)		(4,648	)

Tax effects of:
(Deferred tax asset utilized)/ Valuation allowance		(26,687	)		4,648
Income tax benefit	$	-		$	-

Deferred tax asset is calculated based on the statutory average rate of 34%. A 100% valuation was taken as the realization of the NOL is more likely than not.

	As of
	December 31, 2016			September 30, 2016
Deferred tax asset:

Net operating losses (NOLs) carryforwards:		32,427,310			32,513,403
Valuation allowance		(32,427,310	)		(32,513,403	)
Deferred tax assets, net:		-			-