Income Taxes

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 3. Income Taxes

As of June 30, 2019 and 2018, the Company has net operating loss carryforwards of approximately $131,000 and $82,000, respectively, to reduce future federal and state taxable income through 2039 subject to the change in ownership provisions under IRC 382. This results in a deferred tax asset as of June 30, 2019 and 2018, of approximately $27,000 and $17,000, respectively, against which a full valuation allowance has been recorded because the Company's management believes future realization of the related income tax benefit is uncertain.

The Company currently has no federal or state tax examinations in progress nor has it had any federal or state examinations since its inception. All of the Company's tax years are subject to federal and state tax examination.

On December 22, 2017, the enactment date, the Tax Cuts and Jobs Act ("Act") was signed into law. The Act effectively reduces the top corporate tax rate from 35 percent to a flat 21 percent beginning January 1, 2018 and eliminates the corporate Alternative Minimum Tax. The Company has adjusted its deferred tax calculations to reflect this reduction in its tax rate.

The benefit from income taxes consists of the following:

	Year Ended June 30, 2019			Year Ended June 30, 2018
Current expense:
Federal	$	-		$	-
Deferred tax benefit:
Federal		10,000			4,000
Valuation allowance		(10,000	)		(4,000	)
Total	$	-		$	-

The difference between our effective income tax rate and the U.S. federal income tax rate for the years ended June 30, 2019 and 2018 and the tax provision attributable to loss before income taxes is as follows:

	Year Ended			Year Ended
	June 30, 2019			June 30, 2018
Expected income tax provision at the federal statutory rate		21.0	%		21.0	%
Valuation allowance		-21.0	%		-21.0	%
Effective income rate, net		-			-

Pursuant to Section 382 of the Internal Revenue Code of 1986, the annual utilization of a company's net operating loss carryforwards could be limited if the Company experiences a change in ownership of more than 50 percentage points within a three-year period. An ownership change occurs with respect to a corporation if it is a loss corporation on a testing date and, immediately after the close of the testing date, the percentage of stock of the corporation owned by one or more five-percent stockholders has increased by more than 50 percentage points over the lowest percentage of stock of such corporation owned by such stockholders at any time during the testing period.

As of June 30, 2019 and 2018, the Company had no changes in ownership that may have limited the use of the Company's net operating loss carryforwards.