costs incurred in connection with formation and preparation for the Proposed Offering. These costs, together with the underatiter discount, will be charged to capital upon completion of the Proposed Offering or charged to operations if the Proposed Offering is not completed. Income Tares: The Company follows the asset and liability method of accounting for income taxes under FASB ASC, 740, "Income Taxes." Deferral tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities arc measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when nerv-Issry, to reduce deferred tax assets to the amount expected to be realized. FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. There were no unrecognized tax benefits as of June 5, 2015. The Company recognizes accrual interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at June 5, 2015. The Company is cunently not aware of any issues under review that could result in significant payments. accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. Recent Accounting Prono