The components of the net deferred tax assets recognized as of December 31, 2017 and 2016 are as follows:

	2017		2016
Deferred tax assets:
Capitalized start-up costs		447,336		233,755
Deferred tax asset		447,336		233,755
Valuation allowance		(447,336)		(233,755)

Net deferred tax assets	$	–	$	–

A reconciliation of statutory tax rates to effective tax rates were as follows in each of the periods presented:

	2017			2016
Federal income taxes at statutory rate		34.0	%		34.0	%
State income taxes at statutory rate		3.0	%		3.0	%
Valuation allowance		(37.0)	%		(37.0)	%
Effective tax rate		0.0	%		0.0	%

As of December 31, 2017 and 2016 the Company had capitalized start-up costs for tax purposes of approximately $1,403,928 and $687,515, respectively, which will be amortized over 15 years upon commencement of business operations.

As of December 31, 2017and 2016, an evaluation of the deferred tax asset determined that it was more likely than not that the start-up cost asset may not be realized, and therefore a valuation allowance for $477,336 and $233,755, respectively, was recorded.

The Company’s policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the periods ended December 31, 2017 the Company did not recognize any interest or penalties in its statement of operations, nor did it have any interest or penalties accrued in its balance sheets at December 31, 2017 relating to unrecognized tax benefits.

Under the provisions of ASC 740, Accounting for Uncertainty in Income Taxes, the Company identified no significant uncertain tax positions in 2017. The Company files income tax returns in U.S. jurisdiction. There are no federal or state income tax examinations underway for these, and tax returns for the current year are still open to examination.