NOTE 9 – INCOME TAXES

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

	For the three month period ended July 31, 2018			For the three month period ended July 31, 2017
Federal income taxes at statutory rate		21.0	%		35.0	%
State income taxes at statutory rate		8.84	%		8.84	%
Valuation allowance		(29.84	%)		(43.84	%)
Effective tax rate		0.0	%		0.0	%

As of July 31, 2018, the Company had a net operating loss for tax purposes of $409,538.

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 July 31, 2018 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 July 31, 2018 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 2018. 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.