INCOME TAXES

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

7. INCOME TAXES

On December 22, 2017, U.S. tax reform legislation known as the Tax Cuts and Jobs Act (the “2017 Act”) was signed into law. The TCJA made substantial changes to U.S. tax law, including a reduction in the corporate tax rate from 34% to 21%, a limitation on deductibility of interest expense, a limitation on the use of net operating losses to offset future taxable income, the allowance of immediate expensing of capital expenditures, deemed repatriation of foreign earnings through a transition tax and significant changes to the taxation of foreign earnings going forward. These provisions are not effective until January 1, 2018.

The composition of deferred tax assets at December 31, 2017 and 2016 were as follows:

	2017			2016
Deferred tax assets
Benefit from carryforward of net operating loss	$	1,913,000		$	2,917,000
Less valuation allowance		(1,913,000	)		(2,917,000	)
Net deferred tax asset	$	—		$	—

The difference between the income tax benefit in the accompanying statement of operations and the amount that would result if the U.S. Federal statutory rate of 21% and 34% were applied to pre-tax loss for 2017 and 2016, respectively, is attributable to the valuation allowance.

At December 31, 2017, for federal income tax reporting purposes, the Company has $9,109,000 in unused net operating losses available for carryforward to future years which will expire in various years through 2037.

The carrying value of Logicquest Technology Inc.’s deferred tax assets and valuation allowance at December 31, 2017 is determined by the enacted US corporate income tax rate. Consequently, any changes in the US corporate income tax rate will cause an impact the carrying value of the Company’s deferred tax assets and valuation allowance. Under new corporate income tax rate 21%, deferred income tax assets decreased by $1,184,000 and valuation allowance decreased by $1,184,000. The net effect of the tax reform enactment on financial statements is $0.