Quarterly report pursuant to Section 13 or 15(d)

9. FEDERAL INCOME TAX

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9. FEDERAL INCOME TAX
6 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
FEDERAL INCOME TAX

The Company accounts for income taxes under ASC 740-10, which provides for an asset and liability approach of accounting for income taxes. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences, using currently enacted tax laws, attributed to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts calculated for income tax purposes.

 

For the six and three months ended September 30, 2017 and 2016, the Company incurred net operating losses and, accordingly, no provision for income taxes has been recorded.  In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any deferred tax assets.

 

Based on the available objective evidence, including the Company’s history of losses, management believes it is more likely than not that any net deferred tax assets will not be fully realizable. Accordingly, the Company provided for a full valuation allowance against its net deferred tax assets at September 30, 2017 and March 31, 2017, respectively.

 

In accordance with ASC 740, the Company has evaluated its tax positions and determined that there are no uncertain tax positions.