Note 10 - Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Note 10 - Income Taxes

Note 10 – Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes plus operating loss carryforwards. The tax effects of significant items comprising the Company’s net deferred tax assets are as follows:

	As of December 31,
	2015
Tax Deferred Asset:
Net operating loss carryforward	$	238,784
Deferred Tax Assets	$	238,784
Valuation Allowance		(238,784	)
Total Net Deferred Tax Asset	$	—

As of December 31, 2015, the Company has net deferred tax assets of $629,042 (tax effected $238,784). Due to losses reported and considering the Company’s limited operating history and uncertainty of achieving significant profits to fully realize the deferred tax assets, the Company has recorded a full valuation allowance against the deferred tax assets.

The Company has federal operating losses carried forward of $629,042 that can be carried forward for twenty years due to the spin-out and restructuring plan. The operating losses will begin to expire in 2036. The Company’s ability to utilize the net operating losses is contingent on generating sufficient future taxable income prior to their expiration.

In 2015, the Company had a change in ownership and name. The prior year annual financial statement showing deferred tax assets of $15.5 million ($6.1 million tax effected) was comprised of the activity of a subsidiary of Trunity Holdings, Inc., Trunity, Inc. Trunity, Inc. underwent a change in ownership when the Newco4pharmacy, LLC merged into Trunity Holdings, Inc. After the merger the subsidiary’s assets, liabilities and operations were part of a spin out to the private company and the deferred tax assets and net operating losses (excluding the net operating losses pertaining to the liabilities assumed by the Company) followed the spin out. True Nature Holding, Inc. is not continuing the education software and systems business or utilizing any of the subsidiary’s assets going forward and therefore does not receive the tax benefit previously reported related to net operating losses that were created from debt not assumed.