Note 10 - Income Taxes

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 

10

 - INCOME TAXES

At

March 31, 2017,

the Company had federal and state net operating loss carry-forwards, (NOL’s) of approximately

$2,288,000,

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.

Significant components of deferred tax assets are as follows as of 

March 31, 2017

and

2016:

 

	2017			2016
Deferred tax assets (liabilities):
Net operating loss carry-forward	$	915,000		$	1,407,000
Stock based compensation		279,000			239,000
Other		11,000			11,000
Deferred tax assets		1,205,000			1,657,000
Valuation allowance		(279,000	)		(800,000	)
Deferred tax asset, net	$	926,000		$	857,000

The change in the valuation allowance for the year ended

March 31, 2016

decreased by

$929,000.

The benefit from income taxes for the years ended at

March 31, 2017

and

2016

differs from that amount using the statutory federal income tax rate as follows:

	2017			2016
Statutory federal income tax rate		34	%		34	%
Change in valuation allowance		(40	%)		(362	%)
Effective income tax rate		(6	%)		(328	%)