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Note 11. Income Taxes.
 12 Months Ended
Dec. 31, 2015
Notes  
Note 11. Income Taxes.

Note 11. Income Taxes.

We have adopted ASC 740 which provides for the recognition of a deferred tax asset based upon the value the loss carry-forwards will have to reduce future income taxes and management's estimate of the probability of the realization of these tax benefits. Our net operating loss carryovers incurred prior to 2014 considered available to reduce future income taxes were reduced or eliminated through our recent change of control (I.R.C. Section 382(a)) and the continuity of business limitation of I.R.C. Section 382(c).

We have a current operating loss carry-forward of $1,941,140 resulting in deferred tax assets of $679,399. We have determined it more likely than not that these timing differences will not materialize and have provided a valuation allowance against substantially all our net deferred tax asset.

Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation may result in the expiration of NOL and tax credit carry forwards before full utilization.

 

December 31, 2015

December 31, 2014

Individual components giving rise to the deferred tax assets are as follows:

$

$

Future tax benefit arising from net operating loss carryovers

679,399

35,510

Less valuation allowance

(679,399)

(35,510)

Net deferred asset

$

-

$

-

The Company is not under examination by any jurisdiction for any tax year. Our federal and state income tax returns are open for fiscal years ending on or after December 31, 2011.