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Income Tax
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Tax

Note 8 — Income Tax

 

The Company’s deferred tax assets are as follows at December 31, 2016 and 2015:

 

    December 31, 2016     December 31, 2015  
Deferred tax asset                
Net operating loss carryforward   $ 50,339       3,747  
Valuation Allowance     (50,339 )     (3,747 )
Deferred tax asset, net of allowance   $ -       -  

 

The income tax provision (benefit) consists of the following at December 31, 2016 and 2015:

 

    Year Ended
December 31, 2016		    

For the Period from

April 23, 2015

(Inception) to
December 31, 2015

  
Federal                
Current   $ -     $ -  
Deferred     (36,718 )     (3,477 )
State and Local                
Current     -       -  
Deferred     (9,874 )     (270 )
Change in valuation allowance     46,592       3,747  
Income tax provision (benefit)   $ -     $ -  

  

The Company has a net operating loss (“NOL”) of approximately $118,221, These NOLs, if not utilized, expire beginning in 2035. The ultimate realization of the net operating loss is dependent upon future taxable income, if any, of the Company and may be limited in any one period by applicable tax rules. Although management believes that the Company will have sufficient future taxable income to absorb the net loss carryovers before the expiration of the carryover period, there may be circumstances beyond the Company’s control that limit such utilization. Accordingly, management has determined that full valuation allowances of the deferred tax asset are appropriate as of December 31, 2016.

 

Internal Revenue Code Section 382 imposes limitations on the use of NOL carryovers when the stock ownership of one or more 5% shareholders (shareholders owning more than 5% of the Company’s outstanding capital stock) has increased on a cumulative basis more than 50 percentage points within a period of two years. Management cannot control the ownership changes occurring as a result of public trading of the Company’s Common Stock. Accordingly, there is a risk of an ownership change beyond the control of the Company that could trigger a limitation of the use of the loss carryover.

  

The deferred tax asset reflected in the tables above resulted from applying an effective combined federal and state tax rate of 42.6% to the net operating losses from fiscal 2015. Effective tax rates differ from statutory rates.

 

A reconciliation of the statutory tax rate to the Company’s effective tax rates as of December 31, 2016 and 2015 is as follows:

 

    Year Ended 
December 31, 2016		    

For the Period from

April 23, 2015

(Inception) to
December 31, 2015

  
Statutory federal income tax rate     -34.0 %     -34.0 %
State taxes, net of federal tax benefit     -8.6 %     -2.6 %
Change in valuation allowance     42.6 %     36.6 %
Income tax provision (benefit)     0.0 %     0.0 %