• Filing Date: 2017-02-21
  • Form Type: 10-Q
  • Description: Quarterly report
v3.6.0.2
Note 9 - Income Taxes
9 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
NOTE 
9
 - INCOME TAXES
 
At
December
31,
2016,
the Company had federal and state net operating loss carry-forwards ("NOL")'s of approximately
$2,616,000,
which are due to expire through fiscal
2034.
 
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 partial valuation allowance for the deferred tax asset resulting from the NOL's and depreciation and amortization. During the
nine
months ended
December
31,
2016,
the Company utilized approximately
$908,000
in net operating losses and expects to utilize
$1,200,000
before expiration. For the
nine
months ended
December
31,
2016,
the
$363,000
reduction in deferred income taxes was offset by a similar reduction in the valuation allowance.