| Income Taxes | Note 8 – Income Taxes The Company accounts for income taxes under FASB ASC
740 (“ASC 740”). For the years ended March 31, 2021 and 2020, the Company did not record a current or deferred income tax
expense or benefit. The following table reconciles the federal statutory income rate to the Company’s effective income tax rate:
Year Ended March 31,
2021 2020
Tax at U.S. statutory rate 21.0 % 21.0 %
Changes from statutory rate:
State taxes, net of federal benefit 6.3 % 6.2 %
Non-deductible Permanent items (0.1 )% (0.5 )%
Change in valuation allowance (27.2 )% (26.7 )%
Effective income tax rate 0.00 % 0.00 % Deferred tax assets and liabilities are determined
based on the difference between financial statement and tax bases using enacted rates in effect for the year in which the differences
are expected to reverse. The components of the Company’s deferred tax assets are as follows:
Year Ended March 31,
2021 2020
Net operating loss carryforwards $ 487,555 $ 411,448
Accrued expenses 104,347 39,658
Gross deferred tax assets 591,902 451,106
Valuation allowance (591,902 ) (451,106 )
Deferred tax assets, net $ — $ — The Company has weighed the positive and negative
evidence to assess the recoverability of its deferred tax assets. Realization of future tax benefits is dependent on many factors, including
the Company’s ability to generate taxable income. After this assessment, the Company determined it was more likely than not that
the Company will not realize the benefit of its deferred tax assets. As a result, the Company has provided a full valuation allowance
against its net deferred tax assets. The valuation allowance for deferred tax assets as of March 31, 2021 and 2020 was $591,902 and $451,106,
respectively. For the years ended March 31, 2021 and March 31, 2020, the Company recorded a net valuation increase of $140,796 and $142,007,
respectively, primarily related to net operating losses and accrued expenses. As of March 31, 2021, the Company had gross U.S. federal
net operating loss carryforwards of $2,123,979 including $1,257,572 that had an indefinite carryforward period and $866,407 that were
subject to expiration at various dates through 2037. The Company had gross state operating loss carryforwards of $656,958 that were subject
to expiration through 2040. The net operating loss carryforwards are subject to review and possible adjustment by the Internal Revenue
Service and state authorities. Net operating loss carryforwards may become subject
to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year
period in excess of 50%, as defined under Sections 382 and 383 of the Internal Revenue Code, respectively, as well as similar state provisions.
This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount
of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership
changes may further affect the limitation in future years. The Company has not completed a study to assess whether
one or more ownership changes have occurred, as defined in Section 382 of the Code. As such, the Company’s net operating losses
may be limited. Any limitation may result in expiration of a portion of the net operating loss carryforwards or research development credit
carryforwards before utilization. The Company files income tax returns in the United
States and Massachusetts. All years prior to March 31, 2017 are closed with the Internal Revenue Service. As of March 31, 2021, there
are currently no income tax audits in progress. As of March 31, 2021 and 2020, the Company did not
have any unrecognized tax benefits and did not have a balance of accrued interest or penalties related to uncertain tax positions. In March 2020, the Coronavirus Aid, Relief, and Economic
Security Act (the “CARES Act”) was signed into law. The CARES Act includes provisions relating to several aspects of corporate
income taxes. The CARES Act did not have a significant impact on the Company’s provision for income taxes. |
