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

NOTE 8 – INCOME TAXES

 

The Company’s deferred tax assets predominantly consist of temporary differences arising from net operating loss carryforwards, accrued compensation and shared based compensation. In assessing the ability to realize the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. A significant piece of objective negative evidence considered in management’s evaluation of the realizability of its deferred tax assets was the limited financial history and forecasted losses during the first full year of operations of the Company. On the basis of this evaluation, management recorded a valuation allowance against all deferred tax assets as the ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the period in which these temporary differences become deductible.

 

The Company’s net deferred tax assets consisted of the following:

 

          
   DECEMBER 31, 
   2024   2023 
         
Deferred tax assets:          
Net operating loss carryforward  $1,684,352   $1,598,368 
Share-based compensation   501,224    579,388 
Charitable contributions   1,079    1,079 
Total deferred tax assets  $2,186,655   $2,178,835 
Less: valuation allowance   (2,129,392)   (2,132,583)
Total deferred tax assets, net  $57,263   $46,252 
           
Deferred tax liabilities:          
Depreciation  $1,351   $1,351 
Accrued compensation   55,912    44,901 
Total deferred tax liabilities  $57,263   $46,252 
           
Net deferred tax asset or liability  $-   $- 

 

          
   DECEMBER 31, 
   2024   2023 
Deferred tax asset valuation allowance:          
Beginning balance  $(2,132,583)  $(670,986)
Increase   3,191    (1,461,597)
Ending balance  $(2,129,392)  $(2,132,583)

 

As of December 31, 2024 and 2023, the Company provided a 100% valuation allowance against the net deferred tax assets.

 

Provision for income tax (benefit) effective rates, which differs from the federal and state statutory rates were as follows for the years ended:

 

          
   DECEMBER 31, 
   2024   2023 
         
Tax at U.S. federal statutory rate   21.00%   21.00%
State, net of federal benefit   5.73%   5.89%
Non-Deductible Expenses   -0.94%   -0.40%
Change in valuation allowance   -25.79%   -26.49%
    0.00%   0.00%

 

The Company files U.S. federal income tax returns with the Internal Revenue Service (“IRS”). As of December 31, 2024, the Company is currently not under examination by the IRS. The Company did not have any unrecognized tax benefits at either December 31, 2024 or 2023. If applicable in the future, any interest and penalties related to uncertain tax positions will be recognized in income tax expense.

 

The Company files state income tax returns in Nevada and Florida. As of December 31, 2024, the Company is currently not under examination by either state tax authority.