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

NOTE 13 - INCOME TAXES

 

The Company maintains deferred tax assets and liabilities that 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. The deferred tax assets on December 31, 2025 and 2024 consist of net operating loss carryforwards. The net deferred tax asset has been fully offset by a valuation allowance because of the uncertainty of the attainment of future taxable income.

 

For the years ended December 31, 2025 and 2024, the components of (loss) income before income taxes were as follows:

 

   2025   2024 
Domestic  $(2,854,415)  $573,958 
Total loss before income taxes  $(2,854,415)  $573,958 

 

The following table reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate for the year ended December 31, 2025:

 

   Year Ended
December 31, 2025		 
   Amount   Percent 
Statutory federal income tax benefit  $(158,427)   (21.0)%
State taxes, net of federal benefit   (49,037)   (6.5)%
Permanent items   57,915    7.7%
Change in valuation allowance   149,549    19.8%
Total  $
-
    0.0%

 

As previously disclosed for the year ended December 31, 2024, prior to the adoption of ASU 2023-09, the effective income tax rate differed from the federal statutory income tax rate as follows:

 

   Years Ended
December 31,		 
   2024 
Income tax expense at U.S. statutory rate  $120,531 
Income tax expense – state   37,307 
Permanent differences   (30,847)
Change in valuation allowance   (126,991)
Total provision for income tax  $
-
 

 

The Company’s approximate net deferred tax asset as of December 31, 2025 and 2024 was as follows:

 

Deferred Tax Asset:  December 31,
2025		   December 31,
2024		 
Net operating loss carryforward  $708,658   $559,109 
Impairment of rental property   577,500    
-
 
Net deferred tax assets before valuation allowance   1,286,158    559,109 
Valuation allowance   (1,286,158)   (559,109)
Net deferred tax asset  $
-
   $
-
 

 

The net operating loss carryforward was approximately $2,577,000 as of December 31, 2025. The Company provided a valuation allowance equal to the net deferred income tax asset as of December 31, 2025 and 2024 because it was not known whether future taxable income will be sufficient to utilize the loss carryforward. Additionally, the future utilization of the net operating loss carryforward to offset future taxable income is subject to an annual limitation as a result of ownership changes that may occur in the future. The 2017 estimated loss carry forward of approximately $1,026,401 expires on December 31, 2037. Subsequent to 2017, all estimated loss carry forwards may be carried forward indefinitely subject to annual usage limitations. Based on the Company’s analysis to determine the limitation on the utilization of its net operating loss carryforward amounts, in 2018, the deferred tax asset was reduced by any carryforward that cannot be utilized or expires prior to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance. In 2025, the valuation allowance increased by $727,049. The potential tax benefit arising from certain loss carryforwards will expire in 2038.

 

The Company does not have any uncertain tax positions or events leading to uncertainty in a tax position. The Company’s 2025, 2024, 2023 and 2022 Corporate Income Tax Returns are subject to Internal Revenue Service examination.