The reconciliation of income tax benefit at the U.S. statutory rate of 34% for the periods ended June 30, 2015 and 2016 to the Company’s effective tax rate is as follows:

	2016	2015
Income tax benefit at statutory rate	$ (3,422)	$ (1,560)
Change in valuation allowance	3,422	1,560
Income tax benefit	-	-)

The tax effects of temporary differences that give rise to the Company’s net deferred tax assets as of June 30, 2015 and June 30, 2016 are as follows:

	2016	2015
Net Operating Loss	$ (4,988)	$ (1,560)
Valuation allowance	4,988	1,560
Net deferred tax asset	-	-)

The Company has $14,672 of net operating losses (“NOL”) carried forward to offset taxable income in future years which expire commencing in fiscal 2036. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against all of the deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized.