Annual report pursuant to Section 13 and 15(d)

INCOME TAX (Tables)

INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2017

Net deferred tax assets consist of the following components as of December 31:

	2017			2016
Deferred Tax Assets:
NOL Carryover	$	1,212,100		$	1,691,400
Related party accrual		75,400			500
Product returns & allowance		—			—
Payroll accrual		7,800			34,300
Deferred tax liabilities:
Depreciation		(3,300	)		(13,200	)
Less valuation allowance		(1,292,000	)		(1,713,000	)
Net deferred tax assets	$	—		$	—

Schedule of effective income tax rate

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the period ended December 31, due to the following:

	2017			2016
Book loss	$	(189,400	)	$	(305,900	)
Meals and entertainment		1,400			2,600
Depreciation		(1,100	)		1,200
Other nondeductible expenses		44,600			7,000
Related party accruals		75,000			(900	)
Accrued payroll		58,900			58,900
Valuation allowance		10,600			489,900
	$	—		$	—