Note 10 - Income Taxes

12 Months Ended

Mar. 31, 2015

NOTE 10 - INCOME TAXES

At March 31, 2015, the Company had federal and state net operating loss carry-forwards, (NOL’s) of approximately $4,300,000, which are due to expire through fiscal 2033. These NOLs may be used to offset future taxable income through their respective expiration dates and thereby reduce or eliminate our federal and state income taxes otherwise payable. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Ultimate utilization of such NOL’s and credits is dependent upon the Company’s ability to generate taxable income in future periods and may be significantly curtailed if a significant change in ownership occurs.

Due to the uncertainty related to future taxable income, the Company provides a 100% valuation allowance for the deferred tax benefit resulting from the NOL’s and depreciation and amortization.

Significant components of deferred tax assets and liabilities are as follows as of March 31, 2015 and 2014:

	2015			2014

Deferred tax assets (liabilities):
Net operating loss carry-forward	$	1,718,000		$	1,898,000
Other		11,000			2,000

Deferred tax assets		1,729,000			1,900,000
Valuation allowance		(1,729,000	)		(1,900,000	)

Deferred tax asset, net	$	-		$	-

The provision for income taxes at March 31, 2015 and 2014 differs from that amount using the statutory federal income tax rate as follows:

	2015			2014
Statutory federal income tax rate		34	%		(34	%)
State income taxes, net of federal taxes		6			(6	)
Valuation allowance		(40	)		40
Effective income tax rate		0	%		0	%