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

NOTE 8 - INCOME TAXES

 

Fast Casual files income tax returns in the U.S. federal jurisdiction and the state of Pennsylvania. Fast Casual’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

Net deferred tax assets consist of the following components as of December 31, 2025 and 2024:

 

          
   2025   2024 
Deferred tax assets:          
Net operating loss carryforward  $712,604   $692,851 
Valuation allowance   (712,604)   (692,851)
   $—   $— 

 

The federal income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate of 21% to pretax income from continuing operations for the years ended December 31, 2025 and 2024 due to the following: 

          
   2025   2024 
Pre-tax book income  $166   $14,739 
Gain on disposal of subsidiary   (19,919)   (26,183)
Gain on debt extinguishment   —    (26,183)
Loss on asset impairment and disposal   —    6,345 
Valuation allowance   19,753    5,099 
   $—   $— 

 

The Company had net operating losses of approximately $4,787,245 with state net operating losses beginning to expire in 2041. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. In accordance with the statute of limitations for federal tax returns, the Company’s federal tax returns for the years 2020 through 2024 are subject to examination.

 

Supplemental income tax disclosures follow:

 

   
Income taxes paid:     
Federal $ 3,212
State   —
Foreign   —
Total income taxes paid $ 3,212
     
Income from continuing operations before income taxes:    
Domestic $ —
Foreign   —
Income from continuing operations before income taxes $ —
Income tax expense from continuing operations:    
Federal $ —
State   —
Foreign   —
Total Income Tax Expense (Benefit) $  

 

A reconciliation of income tax expense to the income tax expense computed at the statutory rate follows:

 

           
   Amount   % 
Federal income tax expense (benefit)- at the statutory rate of 21%  $166    21% 
Adjustments:          
Other nontaxable and nondeductible items   (19,919)   (2515%)
Valuation allowance   (19,753)    — 
   $—    (2494%)