|
Income tax rates applicable to the Company
in 2025 and 2024 was 21%.
Presented hereunder are the income tax rates relevant to
the Company’s Israeli subsidiary
| | 2. | As of December 31, 2025, the Company had U.S. federal net operating loss carryforwards of approximately $4,037 available to reduce future taxable income. There is a limitation on the amount of taxable income that can be offset by carryforwards after a change in control (generally greater than a 50% change in ownership). Losses from 2018 and forward that can only offset 80% of taxable income in a future year. The Company’s Israeli subsidiary has estimated total available carryforward operating tax losses for Israeli income tax purposes of approximately $4,955 as of December 31, 2025. |
| |
c. |
Deferred income taxes: |
Deferred income taxes reflect the net
tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows:
| | |
As of December 31, | |
| | |
2025 | | |
2024 | |
| Deferred tax assets: | |
| | |
| |
| Net operating loss carry forward | |
$ | 8,832 | | |
$ | 6,965 | |
| | |
| | | |
| | |
| Deferred tax asset before valuation allowance | |
| 1,987 | | |
| 1,538 | |
| Valuation allowance | |
| (1,987 | ) | |
| (1,538 | ) |
| | |
| | | |
| | |
| Net deferred tax asset | |
$ | - | | |
$ | - | |
| |
d. |
Reconciliation of the theoretical tax expense to the actual tax expense: |
The main reconciling item between the
statutory tax rate of the Company and the effective tax rate is the recognition of valuation allowance in respect of deferred taxes relating
to accumulated net operating losses carried forward due to the uncertainty of the realization of such deferred taxes.
| | |
Year ended
December 31, | |
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| Net loss, as reported in the consolidated statements of comprehensive loss | |
$ | 1,279 | | |
$ | 1,519 | |
| Statutory tax rate | |
| 21 | % | |
| 21 | % |
| Computed “expected” tax income | |
| 269 | | |
| 319 | |
| Valuation allowance | |
| (269 | ) | |
| (319 | ) |
| | |
| | | |
| | |
| Taxes on income | |
$ | - | | |
$ | - | |
|