v3.25.1
Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8- Income Taxes

 

The components of the provision for (benefit from) income taxes are as follows:

 

   For the three months ended
March 31, 2025		   For the three months ended
March 31, 2024		 
         
Current  $-   $- 
Deferred        -    - 
Total provision for (benefit from) income taxes  $-   $- 

 

The reconciliation between income taxes at the U.S. federal statutory rate of 21% and the amount recorded in the accompanying consolidated financial statements is as follows:

 

   For the three months ended
March 31, 2025		   For the three months ended
March 31, 2024		 
         
Computed “expected” tax expense (benefit) (United States statutory rate)   (5,259)   (9,125)
Increase (decrease) in tax expense resulting from:          
State tax expense (benefit), net of Federal tax effect   (2,058)   (2,820)
Change in valuation allowance   7,318    11,945 
Effective rate   -    - 

 

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred income tax assets and (liabilities) are as follows:

 

   March 31, 2025   December 31, 2024 
Deferred income tax assets:          
           
Net operating loss carryforwards  $247,525   $240,207 
Less: Valuation allowance   (247,525)   (240,207)
Total deferred income tax assets   -    - 

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will be realized. The ultimate realization of certain deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. Management considers the scheduled reversal of domestic deferred tax liabilities, projected future taxable income and taxing strategies in making this assessment.

 

For United States income tax purposes, STQN has a net operating loss carry forward of approximately $614,000 at March 31, 2025 (approximately $206,000 of which expires in varying amounts from 2025 to 2037). Current United States income tax law limits the amount of loss available to offset against future taxable income when a substantial change in ownership occurs. Income tax returns for tax years 2022, 2023, and 2024 remain subject to examination by the Internal Revenue Service.

 

Union has a United States net operating loss carry forward of approximately $395,000 at December 31, 2024.