At April 30, 2017, the Company had federal and state net operating loss carryforwards of $34,341,426 and $34,341,426, respectively, available to offset against future taxable income, which expire in 2019 through 2036.

Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. Based on the assessment of all available evidence including, but not limited to, the Company’s limited operating history in its core business and lack of profitability, uncertainties of the commercial viability of its technology, the impact of government regulations and healthcare reform initiatives and other risks normally associated with biotechnology companies, the Company has concluded that is more likely than not that these operating loss carryforwards will not be realized. Accordingly, 100% of the deferred tax valuation allowance has been recorded against these assets.

Deferred income taxes reflect the net effect of temporary differences between the financial reporting carrying amounts of assets and liabilities and income tax carrying amounts of assets and liabilities. The components of the Company’s deferred tax assets and liabilities, both current and long-term, are as follows:

For all years presented, the Company did not recognize any deferred tax assets or liabilities. The net change in valuation allowance for the years ended April 30, 2017 and 2016 was an increase of $1,701,238 and $3,547,395, respectively.

During the current year ended April 30, 2017, the Company determined that the NOL carryforwards were overstated by approximately $5,000,000. The Company recalculated the 2009 and 2010 income tax losses using the appropriate tax methods, mostly relating to impairment of assets for book purposes that were not fully deductible for income tax purposes. However, since the Company has recorded a valuation allowance against its net deferred tax assets; there is no effect on the Company consolidated balance sheets, statements of operations and cash flows for the year ended April 30, 2017.

The provision for income taxes differs from the provision computed by applying the Federal statutory rate to net loss before income taxes as follows:

There have been no changes to the Company’s liability for unrecognized tax benefits during the year ended April 30, 2017.

The Company files income tax return in the U.S. Federal jurisdiction and various state jurisdictions. As of the year ended April 30, 2017, the tax returns for 2011 through 2016 remain open to examination by the Internal Revenue Service and various state tax authorities.

The Company’s policy is to recognize any interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of the years ended April 30, 2017 and 2016, the Company had accrued no interest or penalties related to uncertain tax positions.