|12 Months Ended|
Mar. 31, 2017
|Income Tax Disclosure [Abstract]|
NOTE 9 – INCOME TAXES
The Company recorded a benefit for state income taxes of approximately $15,000 and zero for the years ended March 31, 2017 and 2016, respectively, as a result of the losses and change in valuation allowance for each year.
The following is a reconciliation between actual tax expense (benefit) and income taxes computed by applying the U.S. federal income tax rate to income from continuing operations before income taxes for the years ended March 31, 2017 and 2016:
Tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred liabilities are presented below:
The Company experienced an “ownership change” within the meaning of IRC Section 382 during the year ended March 31, 2017. As a result, certain limitations apply to the annual amount of net operating losses that can be used to offset post ownership change taxable income. The Company has estimated that $44.7 million of its pre-ownership change net operating loss could potentially be lost due to the IRC Section 382 limitation.
At March 31, 2017, the Company had estimated net operating loss carry-forwards for federal and state income tax purposes of approximately $11.7 million, adjusted for the ownership change limitation discussed above, which will begin to expire, if not previously used, beginning in the year 2029.
The above estimates are based upon management’s decisions concerning certain elections which could change the relationship between net income and taxable income. Management decisions are made annually and could cause the estimates to vary significantly.
The Company files income tax returns for federal and state purposes. Management believes that with few exceptions, the Company is not subject to examination by United States tax authorities for tax periods prior to 2012.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef