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INCOME TAXES

12 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

The Company provides for income taxes under FASB ASC 740, Accounting for Income Taxes. FASB ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect currently.

FASB ASC 740 requires the reduction of deferred tax assets by a valuation allowance, if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In the Company’s opinion, it is uncertain whether they will generate sufficient taxable income in the future to fully utilize the net deferred tax asset. Accordingly, a valuation allowance equal to the deferred tax asset has been recorded. The total deferred tax asset is $5,134,484 which is calculated by multiplying a 34% estimated tax rate by the cumulative net operating loss (NOL) adjusted for the following items:

The components of the Company's deferred tax asset as of September 30, 2017 and 2016 are as follows:

		For the period ended September 30,
		2017			2016
Book loss for the year		$	(13,498,526)		$	(2,540,562)
Adjustments:
Non-deductible portion of meals and entertainment			8,736			6,068
Non-deductible portion of stock compensation			50,130			1,482,052
Non-deductible penalties			—			—
Tax loss for the year			(13,439,660)			(1,052,442)
Estimated effective tax rate			34%			34%
Deferred tax asset		$	(4,569,484)		$	(357,830)

		As of September 30,
		2017				2016
Deferred tax asset		$	5,134,484			$	565,057
Valuation allowance			(5,134,484	)			(565,057)
Current taxes payable			—				—
Income tax expense		$	—			$	—

Below is a chart showing the total estimated corporate federal net operating loss (NOL) and the year in which it will expire.

Year			Amount			Expiration
	2017		$	4,569,484			2037
	2016			358,000			2036
	2015			82,000			2035
	2014			1,000			2034
	2013			12,000			2033
	2012			7,000			2032
	2011			13,000			2031
	2010			6,000			2030
	2009			10,000			2029
	2008			7,000			2028
	2007			1,000			2027
	2006			1,000			2026
	2005			—			2025
	2004			61,000			2024
	2003			—			2023
	2002			4,000			2022
	2001			2,000			2021
	Total		$	5,134,484

The Company plans to file its U.S. federal return for the year ended September 30, 2017 upon the issuance of this filing. The tax years 2012-2016 remained open to examination for federal income tax purposes by the major tax jurisdictions to which the Company is subject. No tax returns are currently under examination by any tax authorities.

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- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

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