• Filing Date: 2017-11-20
  • Form Type: 10-Q
  • Description: Quarterly report
v3.8.0.1
Note 8 - Income Taxes
6 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
NOTE
 
8
 - INCOME TAXES
 
At
September 30, 2017,
the Company had federal net operating loss carry-forwards ("NOL")'s of approximately
$1,902,000,
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 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.
 
 
The Company provides a
 partial valuation allowance for the deferred tax asset resulting from the uncertainty that the stock-based compensation will be deductible. During the
six
months ended
September 30, 2017,
the Company utilized approximately
$386,000
in net operating losses and expects to utilize the entire
$1,902,000
before expiration.
 
The effective rates were approximately
41%
and
(
6%
)
for the
three
and
six
months ended
September 30, 2017
and
2016,
respectively. The
2016
tax rates were favorably impacted relative to the statutory rate by a decrease in the valuation allowance related to the estimated net operating loss carry-forward utilization.