DEFERRED INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2018

Significant components of the Companys net deferred income tax assets at September 30, 2018 and 2017, respectively are as follows:


	2018		2017

Amortization and impairment of license agreement	$	382,593	$	529,503
Allowance for doubtful account		4,053		750
Net operating loss carryforward		3,066,449		4,909,891
Net deferred income tax asset		3,453,095		5,440,144
Less: valuation allowance		(3,453,095)		(5,440,144)
Total deferred income tax assets	$	0.00	$	0.00

A reconciliation of the Federal and respective State income tax rate as a percentage of income before taxes is as follows:


	2018		2017

Federal statutory taxes	$	(101,415)	$	(276,055)
State income taxes, net of federal benefit		(26,561)		(47,255)
Change in tax rate estimates		1,620,004		-0-
Less: Valuation allowance, non-deductable items		495,021		26,449
Change in valuation allowance		(1,987,049)		296,861
	$	-0-	$	-0-


	2018		2017

Federal statutory Income tax rate		21.00%		32,13%
State taxes, net of federal benefit		4.35%		5.50%
Effective rate of deferred tax asset		25.35%		37.63%
Less: Valuation allowance		(25.35%)		(37.63%)
Effective income tax rate		0.00%		0.00%