INCOME TAXES:

12 Months Ended

Mar. 31, 2014

Notes to Financial Statements

NOTE 5 - INCOME TAXES:

The Company’s deferred tax asset relates to net operating losses that may be carried forward to future years. At March 31, 2014, the Company has available net operating losses of $ 582,422 and $399,375 for federal and state income taxes, respectively, that expire from 2018 to 2028. For the years ended March 31, 2014 and 2013, approximately $81,000 and $497,000 in federal net operating losses have expired, respectively. No tax benefit has been reported in the financial statements, because the Company believes there is a 50% or greater chance the carry-forwards will expire unused. Accordingly, the potential tax benefits of the loss carry-forward are offset by a valuation allowance of the same amount. The net change in the valuation allowance resulted in a decrease of $10,193 and $153,772 for the years ended March 31, 2014, and 2013, respectively. Internal Revenue Code Section 382 limits the utilization of net operating loss carryforwards upon a change in control of a Company. Therefore, the amount available to offset future taxable income may be limited, should such a change in control occur.

The Company’s deferred tax asset and valuation allowance as of March 31, 2014 and 2013 are as follows:

	March 31
	2014			2013
Net Operating Losses	$	225,980		$	236,173
Valuation Allowance		(225,980	)		(236,173	)
	$	–		$	–

The Company’s provision for federal and state income taxes for the years ended March 31, 2014 and 2013 consist of the following:

	March 31
	2014			2013
Current Tax Benefit	$	(17,478	)	$	(15,302	)
Benefit of net operating loss		17,478			15,302
Net tax provision	$	–		$	–

The Company’s effective tax rate differed from the federal statutory income tax rate for the years ended March 31, 2014 and 2013 as follows:

	March 31
	2014			2013
Federal statutory rate		34.0%			34.0%
State tax, net of federal tax effect		4.95%			4.95%
Valuation allowance		(38.95%	)		(38.95%	)
Effective tax rate		0.0%			0.0%

As of March 31, 2014 and 2013, the Company does not believe that it has taken any tax positions that would require the recording of any additional tax liability nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next twelve months. The Company’s income tax returns are subject to examination by the appropriate taxing jurisdictions. As of March 31, 2014, the Company’s income tax returns generally remain open for examination for three years from the date filed with each taxing jurisdiction.