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INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 8 – INCOME TAXES

 

No benefit (provision) has been recognized for the years ended December 31, 2025, and 2024. The reconciliation of income tax benefit at the U.S. statutory rate of 21% for years ending December 31, 2025, and 2024, to the Company’s effective tax rate, is as follows:

 

                     
   December 31, 2025   December 31, 2024 
Benefit (provision) at statutory rate   603,666    21.0%  $297,986    21.0%
Effect of Florida state income tax, net of federal benefits   124,901    4.3%   61,655    4.3%
Non-deductible items   

(27,475

)   

(1.0

)%   -    - 
Change in prior year estimate   66,826    2.3%   -    - 
Change in Valuation Allowance   (767,918)   (26.6)%   359,641    (25.3)%
Income tax benefit (provision)  $-    0%  $-    0%

 

The tax effects of temporary differences that give rise to the Company’s net deferred tax liability as of December 31, 2025, and 2024 are as follows:

 

         
   Years Ended, December 31 
   2025   2024 
Deferred tax asset          
Net operating loss carryovers  $14,090,707   $13,329,866 
Research and development   

106,591

    - 
Total deferred tax assets   14,197,298    13,329,866 
Valuation Allowance   (14,097,784)   (13,329,866)
Deferred tax assets, net of allowance  99,514   - 
Deferred tax liability – property and equipment   

(99,514

)   - 
Net Deferred tax asset  $-   $- 

 

As of December 31, 2025, the Company has U.S. net operating loss carryforwards (“NOLs”) of approximately $29.9 million that expire in 2032 through 2037 and approximately $25.4 million with no expiration but which are subject to an 80% limitation upon utilization. The Company has state net operating loss carryforwards of approximately $29.9 million that expire in 2032 through 2037. The deferred tax asset table above reflects the tax-effected balances of the Company’s net operating loss carryforwards using a 25.3% rate for U.S.-based carryforwards.

 

In 2025 and 2024, the Company evaluated its tax positions for years which remain subject to examination by major tax jurisdictions and as a result concluded no adjustment was necessary. The Company had no unrecognized tax benefits as of December 31, 2025, and 2024. The Company recognizes interest accrued related to unrecognized tax benefits and penalties in its income tax provision. U.S. tax returns for the years 2022 to 2024 remain subject to examination but there are currently no ongoing exams in any taxing jurisdictions. Tax returns for years prior to 2022 may remain open with respect to net operating loss carryforwards that are utilized in a later year, as tax attributes from prior years can be adjusted during an audit of a later year.

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the assessment, management has established a full valuation allowance against the entire deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized.