v3.25.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 9 – INCOME TAXES

 

Income tax expense for the years ended December 31, 2024 and 2023 is summarized as follows:

        
   December 31,
2024		   December 31,
2023		 
Deferred:          
Federal  $(160,577)  $(238,657)
State   (37,086)   (55,118)
Change in valuation allowance   197,663    293,775 
Income tax expense (benefit)  $–   $– 

  

The following is a reconciliation of the provision for income taxes at the U.S. federal income tax rate to the income taxes reflected in the Statement of Operations:

        
   December 31,
2024		   December 31,
2023		 
Tax at statutory tax rate   21.00%    21.00% 
State taxes   4.85%    4.85% 
Other permanent items   0.44%    (0.02%)
Valuation allowance   (26.29%)   (25.83%)
Income tax expense   –    – 

 

The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at December 31, 2024 and 2023 are as follows:

        
   December 31,
2024		   December 31,
2023		 
Deferred tax assets:          
Net operating loss carry forward  $2,897,800   $2,700,136 
Total gross deferred tax assets   2,897,800    2,700,136 
Less: valuation allowance   (2,897,800)   (2,700,136)
Net deferred tax assets  $–   $– 

 

Deferred income taxes are provided for the tax effects of transactions reported in the financial statements and consist of deferred taxes related primarily to differences between the bases of certain assets and liabilities for financial and tax reporting. The deferred taxes represent the future tax return consequences of those differences, which will either be deductible or taxable when the assets and liabilities are recovered or settled.

 

At December 31, 2024 and 2023, the Company had accumulated net operating losses of approximately $11,208,000 and $10,444,000, respectively, for U.S. federal and Massachusetts income tax purposes available to offset future taxable incomes. The net operating losses generated in tax years prior to December 31, 2017, can carry forward for 20 years, whereas the net operating losses generated after December 31, 2017 can carry forward indefinitely. Management determined that it was unlikely that the Company’s deferred tax assets would be realized and have provided for a full valuation allowance associated with the net deferred tax assets.

 

In the ordinary course of business, the Company’s income tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessment by these taxing authorities. Accordingly, the Company believes that it is more likely than not that it will realize the benefits of tax positions it has taken in its tax returns or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with FASB ASC 740. Differences between the estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for unrecognized tax benefits. The Company is delinquent in filing its Federal and State income tax returns for the years ended December 31, 2021, 2022, 2023 and 2024. As of December 31, 2024, tax years 2024, 2023, 2022, and 2021 remain open for examination by the Internal Revenue Service and the Massachusetts Division of Revenue. The Company has received no notice of audit from the Internal Revenue Service or the Massachusetts Division of Revenue for any of the open tax years.