v3.25.2
INCOME TAX
 6 Months Ended
Jun. 30, 2025
INCOME TAX  
INCOME TAX

NOTE 9. INCOME TAX

 

The Company and its two subsidiaries were incorporated in the United States of America and were subject to United States federal taxation at the tax rate of 21%. No provisions for income taxes have been made as the Company and two subsidiaries have no taxable income for the period. As of June 30, 2025, the Company and two subsidiaries had cumulative net operating losses (NOL’s) aggregating $106,721,452 that may be available to reduce future years’ taxable income. Future tax benefits that may arise as a result of these losses have not been recognized in these financial statements as their realization is determined not likely to occur and, accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. No tax benefit has been realized since a 100% valuation allowance has offset deferred tax assets resulting from the net operating losses.

 

Provision for income tax consists of the following:

 

 

 

As of

June 30,

2025

 

 

As of

December 31,

2024

 

Current income tax (benefit)

 

 

 

 

 

 

U.S.

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

Deferred income tax

 

 

 

 

 

 

 

 

Deferred tax assets for NOL carry-forwards

 

 

22,411,505

 

 

 

22,218,336

 

Valuation allowance

 

 

(22,411,505 )

 

 

(22,218,336 )

Net changes in deferred income tax (benefit)

 

 

-

 

 

 

-

 

Total income tax provision

 

$-

 

 

$-

 

 

The net loss before income taxes and its provision for income taxes as follows:

 

 

 

For the six months ended

June 30,

2025

 

 

For the six months ended

June 30,

2024

 

Net loss before income tax

 

$(919,852 )

 

$(323,555 )

Statutory tax rate

 

 

21%

 

 

21%

Tax expenses (benefit) at the statutory tax rate, net

 

 

(193,169 )

 

 

(67,947 )

Valuation allowance

 

 

193,169

 

 

 

67,947

 

Income tax expenses, net

 

$-

 

 

$-

 

 

Significant components of the Company’s deferred tax benefits during the period as follows:

 

 

 

For the six months ended

June 30,

2025

 

 

For the six months ended

June 30,

2024

 

Net operating loss carry-forwards

 

$193,169

 

 

$67,947

 

Less: Valuation allowance

 

 

(193,169 )

 

 

(67,947 )

Deferred tax assets, net

 

$-

 

 

$-