v3.26.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 8 – INCOME TAXES

 

The income tax provision for the years ended December 31, 2025 and 2024 was as follows:

 

   2025   2024 
   December 31, 
   2025   2024 
Current:          
U.S. federal  $12,500   $79,500 
State and local   500    500 
Current total    13,000    80,000 
Deferred:          
U.S. federal   (214,000)   (209,000)
State and local   (7,000)   - 
Deferred total    (221,000)   (209,000)
Change in valuation allowance   221,000    209,000 
Provision for income taxes  $13,000   $80,000 

 

A reconciliation of the federal income tax rates to the Company’s effective tax rates for the years ended December 31, 2025 and 2024 consist of the following:

 

   %   $   %   $ 
   2025   2024 
   %   $   %   $ 
U.S. federal statutory rate   21%  $294,355    21%  $451,910 
Effects of:                    
State taxes, net of federal benefit   -         -      
Change in state rate   -         -      
Change in non-deductible merger expenses   -6%   (86,355)   -15%   (322,909)
Change in valuation allowance   -16%   (221,000)   -10%   (209,000)
Effective Rate   -1%  $(13,000)   -4%  $(80,000)

 

Significant components of the Company’s deferred tax assets as of December 31, 2025 and 2024 are summarized below.

 

   2025   2024 
Deferred tax asset:          
Net operating losses  $-   $- 
Organization costs/startup costs   1,063,000    842,000 
Total deferred tax asset   1,063,000    842,000 
Less valuation allowance   (1,063,000)   (842,000)
Net deferred income tax liability  $-   $- 

 

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company assessed the need for a valuation allowance of $1,063,000 and $842,000 as of December 31, 2025 and 2024. To that extent, a full valuation allowance was recorded as the Company determined it is more likely than not the deferred tax assets will not be realized. Our net deferred tax asset and valuation allowance increased by $221,000 and $209,000 for the years ended December 31, 2025 and 2024, respectively. 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.

 

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax positions through its income tax expense.

 

The Company files income tax returns in the U.S. and Massachusetts jurisdictions and is subject to examination by the various taxing authorities.