The Company’s deferred tax asset relates to net operating losses that may be carried forward to future years. At March 31, 2020, the Company has available net operating losses of $633,252 and $747,753 for federal and state income taxes, respectively. No tax benefit has been reported in the financial statements, because the Company believes there is a 50% or greater chance the carry-forwards will not be utilized. Accordingly, the potential tax benefits of the loss carry-forward are offset by a valuation allowance of the same amount. The Company’s increase in valuation allowance of $7,124 during the year ended March 31, 2020 was recorded to offset the deferred tax benefit of the Company’s tax loss for the year. The Company’s decrease in valuation of $(4,337) during the year ended March 31, 2019 was recorded to offset the deferred tax expense incurred during the year ended March 31, 2019 which was attributable to the change in the federal statutory rate which impacted the deferred tax asset associated with the Company’s net operating losses that can be utilized to offset future taxable income of the Company.

The Company’s deferred tax asset and valuation allowance as of March 31, 2020 and 2019 were as follows:

	March 31
	2020			2019
Net Operating Losses	$	177,287		$	170,163
Valuation Allowance		(177,287	)		(170,163	)

The Company’s provision for federal and state income taxes for the years ended March 31, 2020 and 2019 consisted of the following:

	March 31
	2020			2019
Current Tax Expense (Benefit)	$	-		$	-
Deferred Tax Expense (Benefit)		(7,124	)		4,337
Increase (Decrease) in Valuation Allowance		7,124			(4,337	)
Net tax provision	$	0		$	0

The Company’s effective tax rate differed from the federal statutory income tax rate for the years ended March 31, 2020 and 2019 as follows:

	March 31
	2020			2019
Federal statutory rate		21.0	%		21.0	%
State tax, net of federal tax effect		5.93	%		5.53	%
Valuation allowance	(26.93		%)	(26.53		%)
Effective tax rate		0.0	%		0.0	%

As of March 31, 2020 and 2019, the Company does not believe that it has taken any tax positions that would require the recording of any additional tax liability nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next twelve months. The Company’s income tax returns are subject to examination by the appropriate taxing jurisdictions. As of March 31, 2020, the Company’s income tax returns generally remain open for examination for three years from the date filed with each taxing jurisdiction.