Income Taxes

12 Months Ended

Jan. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The provision (benefit) for income taxes consists of the following:

	Years ended January 31,
	2022		2021
Current
Federal	$	—	$	—
State	—		—
Deferred
Federal	6,684		(19,355)
State	(24,210)		(3,244)
Change in valuation allowance	17,526		22,599
	$	—	$	—

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before the provision for income taxes. The sources and tax effects of the difference are as follows:

	Years ended January 31,
	2022		2021
Income tax at statutory rate	21.00	%	21.00	%
State income taxes, net of federal benefit	4.35		3.52
Expiration of historical NOLs	(33.78)		—
Impact of State rate change	26.75		—
Change in valuation allowance	(18.32)		(24.52)
Total	0.00	%	0.00	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and tax liabilities are as follows:

	January 31,
	2022		2021
Net operating loss	$	773,648	$	756,121
Gross deferred tax assets:	773,648		756,121
Less: valuation allowance	(773,648)		(756,121)
Net deferred tax asset	$	—	$	—

As of January 31, 2022 the Company had net operating loss carryforwards of approximately $3,052,000 which may be used to offset future taxable income. $2,776,000 expires through the year 2040, while $276,000 carries over indefinitely. Pursuant to Code Sec. 382 of the Internal Revenue Code, the utilization of net operating loss carryforwards may be limited as a result of a cumulative change in stock ownership of more than 50% over a three year period. The effect of such limitation on the utilization of net operating loss carryforwards has not been determined. Due to changes in control the availability of the net operating loss carryforwards to offset future taxable income may be limited. The tax years for the years ended January 31, 2018 through the current year remain open for federal income tax audits.