• Filing Date: 2018-02-14
  • Form Type: 10-Q
  • Description: Quarterly report
v3.8.0.1
Note 8 - Income Taxes
9 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
NOTE
 
8
 - INCOME TAXES
 
At
 
December 31, 2017,
the Company had federal net operating loss carry-forwards ("NOL")'s of approximately
$1,881,000,
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
nine
months ended
December 31, 2017,
the Company utilized approximately
$407,000
in net operating losses and expects to utilize the entire
$1,881,000
before expiration.
 
The effective rates were approximately
97%
and
0%
for the
 
three
and
nine
months ended
December 31, 2017
and
2016,
respectively.
 
The Tax cuts and Job Acts, enacted on
December 22, 2017,
among other provisions, reduces the top corporate tax rate from
35%
to a flat
21%
and eliminates the Corporate Alternative Minimum Tax for tax years
beginning after
January 1, 2018.
This new law change necessitated a discrete adjustment to reduce the deferred income tax asset by 
$227,000.