Note 11 - Income Taxes

12 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 

1

1

 - INCOME TAXES

At 

March 31, 2018, 

the Company had federal and state net operating loss carry-forwards, (NOL’s) of approximately 

$2,300,000,

 which are due to expire through fiscal 

2033.

 These NOLs 

may 

be used to offset future taxable income through their respective expiration dates and thereby reduce or eliminate our federal and state income taxes otherwise payable. A valuation allowance is provided when it is more likely than 

not

 that some portion or all of the deferred tax assets will 

not

 be realized. Ultimate utilization of such NOL’s and credits is dependent upon the Company’s ability to generate taxable income in future periods and 

may 

be significantly curtailed if a significant change in ownership occurs.

Significant components of deferred tax assets are as follows as of

March 31, 2019

and

2018:

	2019		2018
Deferred tax assets (liabilities):
Net operating loss carry-forward	$	637,000	$	554,000
Stock based compensation		-		196,000
Research & development tax credit carry-forward		429,000		495,000
Other		41,000		43,000
Deferred tax assets		1,107,000		1,288,000
Valuation allowance		-		(196,000	)
Deferred tax asset, net	$	1,107,000	$	1,092,000

The change in the valuation allowance for the year ended 

March 31, 2017

increased by

$521,000.

The benefit from income taxes for the years ended at 

March 31, 2018 

and 

2017

 differs from that amount using the statutory federal income tax rate as follows:

	2019		2018
Statutory federal income tax rate		21%		21%
Change in valuation allowance		(17%)		278%
Effective income tax rate		4%		299%