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

NOTE 5–INCOME TAXES

 

The Company is subject to taxation in the United States and California. The benefit from income taxes for the years ended December 31, 2025 and 2024 are summarized below:

 

   2025   2024 
Current:          
Federal  $-   $- 
State   -    - 
Total current   -    - 
           
Deferred:          
Federal   (60,346)   (38,174)
State   -    - 
Change in valuation allowance   57,446    73,150 
Total deferred   2,900    34,976 
Income tax provision (benefit)  $2,900   $34,976 

 

At December 31, 2025, the Company had federal net operating loss and capital loss carry forwards of approximately $388,321 which may be offset against future taxable income through 2040.

 

At December 31, 2025 and December 31, 2024, deferred tax assets (liabilities) consist of the following:

 

 

   2025   2024 
         
Net operating loss carry-forwards  $100,520   $42,806 
Inventory reserve   2,520    2,457 
Accrued interest – related party   (8,094)   (3,033)
Accrued expenses – related party   (14,490)   (15,120)
Unrealized loss on investments   46,040    46,040 
Total deferred tax assets   126,496    73,150 
Less: valuation allowance   (126,496)   (73,150)
           
Net deferred tax assets  $-   $- 

 

 

A reconciliation of the statutory federal income tax rate for the years ended December 31, 2025 and December 31, 2024 to the effective tax rate is as follows:

 

   2025   2024 
Expected federal tax   21.00%   21.00%
           
Valuation allowance   (22.14%)   (40.24%)
           
Total   (1.14)%   (19.24)%

 

The Company follows ASC 740-10, Uncertainty in Income Taxes. The Company recognizes interest and penalties associated with uncertain tax positions as a component of income tax expense. The Company does not have any unrecognized tax benefits or a liability for uncertain tax positions at December 31, 2025 and December 31, 2024. The Company does not expect to have any unrecognized tax benefits within the next twelve months. The Company recognizes accrued interest and penalties associated with uncertain tax positions, if any, as part of income tax expense. There were no tax related interest and penalties recorded for 2025 and 2024. The Company’s income tax returns are subject to examination and adjustments by the IRS for at least three years following the year in which the tax attributes are, including prior year net operating losses.