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

 

8. Income Taxes

 

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

                                                 
Rate Reconciliation December 31, 2025   December 31, 2024  
  Chilean
Cobalt		   Baltum   Consolidated   Rate Impact   Chilean
Cobalt		   Baltum   Consolidated   Rate Impact  
Pre-tax book loss   (1,053,324 )   (2,209,816 )   (3,263,140 )         (785,031 )   (97,543 )   (882,574 )      
                                                 
Federal rate   21%     27%                 21%     27%              
Federal provision   (221,000 )   (597,000 )   (818,000 )         (165,000 )   (27,000 )   (192,000 )      
                                                 
State rate   6.99%      n/a                 6.99%      n/a              
State provision   (74,000 )   –     (74,000 )         (55,000 )   –     (55,000 )      
                                                 
Provision at statutory rate   (295,000 )   (597,000 )   (892,000 )   27%     (220,000 )   (27,000 )   (247,000 )   28%  
Change in valuation allowance   295,000     597,000     892,000     -27%     220,000     27,000     247,000     -28%  
Total tax expense (benefit) current and deferred   –     –     –     0%     –     –     –     0%  

 

As of December 31, 2025, the Company had federal and state net operating loss carryforwards of approximately $6,900,000 with no expiration date to use these credits, that are available to offset future liabilities for income taxes. The Company paid no income taxes in the years ended December 31, 2025, and December 31, 2024 in any jurisdiction, related to returns for the fiscal years ended December 31, 2024, and December 31, 2023, nor does it expect to pay any income taxes in 2026, related to the return for the fiscal year ended December 31, 2025. The Company has generally established a valuation allowance against these carryforwards based on an assessment that it is more likely than not that these benefits will not be realized in future years. The Company has reviewed the scheduled reversals of the deferred tax assets and its projected taxable income in conjunction with the changes in tax laws enacted and determined a valuation allowance is required at December 31, 2025 and 2024. The December 31, 2025 and 2024, results of operations include an increase in our valuation allowance of $892,000 and $247,000, respectively. We established the valuation allowance based on the weight of available evidence, both positive and negative, including results of recent and current operations and our estimates of future taxable income or loss by jurisdiction in which we operate. In order to determine the amount of deferred tax assets or liabilities, as well as the valuation allowances, we must make assumptions, including changes in tax laws and other changes impacting our ability to recognize the underlying deferred tax assets, could require us to adjust the valuation allowances. The Company has not undertaken a formal analysis of 26 C.F.R. Section 382 and cannot determine at this time whether the NOL will be subject to limitations due to a change in control.